Oil gains on rosier outlook for global economy, fuel demand

Author of the article: TOKYO — Oil prices rose for a third session on Tuesday as the passage of a U.S. infrastructure bill, Chinese exports and the global post-pandemic recovery lifted the outlook for fuel demand. Brent crude was up 8 cents at $83.51 a barrel by 0220 GMT, after gaining 0.8% on Monday. U.S.…
Oil gains on rosier outlook for global economy, fuel demand

Author of the article:

TOKYO — Oil prices rose for a third session on Tuesday as the passage of a U.S. infrastructure bill, Chinese exports and the global post-pandemic recovery lifted the outlook for fuel demand.

Brent crude was up 8 cents at $83.51 a barrel by 0220 GMT, after gaining 0.8% on Monday. U.S. oil was up 10 cents at $82.03, also after a 0.8% gain the previous day.

U.S. President Joe Biden’s long-delayed $1 trillion infrastructure bill – which passed through Congress at the weekend – and better-than-expected Chinese exports helped paint a picture of a more expansive global economy.

“More consumption growth lies in wait once travel begins in earnest and jet fuel demand picks up,” JPMorgan Chase commodities analysts said in a note.

The U.S. bank also said global demand for oil in November was already nearly back to pre-pandemic levels of 100 million barrels per day (bpd).

But as major producers maintained strict supply discipline in October, oil prices rose to seven-year highs, with fuel values also rising.

Biden, though, may take measures as early as this week to address soaring gasoline prices, Energy Secretary Jennifer Granholm said on Monday.

“He’s certainly looking at what options he has in the limited range of tools a president might have to address the cost of gasoline at the pump, because it is a global market,” Granholm told MSNBC in an interview.

Despite the tighter market, U.S. crude inventories are expected to have risen a third straight week, a Reuters polls showed, possibly helping to cap further gains. (Reporting by Aaron Sheldrick; Editing by Tom Hogue)

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Italy’s bond yields rise on political uncertainty; Powell eyed
Read More

Italy’s bond yields rise on political uncertainty; Powell eyed

Author of the article: MILAN — Italy’s government bonds underperformed their euro zone peers on Tuesday on growing political uncertainty as markets remained focused on the path of U.S. monetary policy normalization and surging inflation. The Italian Parliament will convene to choose a new president this month with Premier Mario Draghi seen as the leading…
European shares plunge as investors assess Ukraine crisis
Read More

European shares plunge as investors assess Ukraine crisis

Author of the article: European shares dropped to a four-month low on Monday, with auto and technology stocks leading the losses after comments from the Kremlin quelled hopes of a resolution to Europe’s biggest military crisis in decades. The pan-European STOXX 600 slid 1.3% to its lowest level since October over concerning headlines related to…
Ex-Lukoil Traders Jump to US-Based Hartree’s Fuel Oil Desk
Read More

Ex-Lukoil Traders Jump to US-Based Hartree’s Fuel Oil Desk

Hartree Partners LP, the commodities trading firm founded by a pair of Goldman Sachs Group Inc. veterans, hired three ex-Lukoil PJSC traders to build out its fuel oil desk. Author of the article: Bloomberg News Lucia Kassai, Jack Wittels and Rachel Morison An oil pump jack at the New Harmony Oil Field in Grayville, Illinois.…