Oil reverses losses, turns positive on stimulus hopes
Oil prices edged higher on Thursday, boosted by a weak dollar and bullish signals from Chinese import data but pressured by renewed worries about global oil demand due to surging coronavirus cases in Europe and new lockdowns in China.
Brent crude oil futures rose 26 cents, or 0.5%, to $56.32 a barrel. U.S. West Texas Intermediate (WTI) settled 66 cents, or 1.25%, higher at $53.57 per barrel.
The U.S. dollar index slumped to session lows after comments from U.S. Federal Reserve Chair Jerome Powell on interest rates.
A weaker greenback makes dollar-denominated oil cheaper for holders of foreign currencies.
Raising hopes of increased oil demand was a hefty U.S. COVID-19 relief package, which President-elect Joe Biden is due to unveil on Thursday.
China’s total crude oil imports rose 7.3% in 2020, with record arrivals in the second and third quarters as refineries expanded operations and low prices encouraged stockpiling, customs data showed.
Still, the world’s second-largest oil consumer reported its biggest daily jump in new COVID-19 cases in more than 10 months.
Governments across Europe have announced tighter and longer coronavirus lockdowns, with vaccinations not expected to have a significant impact for the next few months.
Reference: CNBC
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