- Brent futures rose 57 cents, or 1.3%, to $44.72 a barrel, while West Texas Intermediate crude rose 69 cents, or 1.68%, to settle at $41.70 per barrel.
- The rise in oil prices is on a track which is close at near five-month highs.
- The United States hopes to make progress on a new economic stimulus package and signs America is making progress on curbing the coronavirus spread.
A recently published news in CNBC highlights that the oil prices are on a rise by 1%. The rise in prices is a positive trend amidst the coronavirus pandemic.
“Crude prices turned positive on stimulus hopes and after another positive round of economic data showed manufacturing recovery continued in June,” Edward Moya, senior market analyst at OANDA in New York, said, pointing to better than expected manufacturing data in Asia, Europe and the United States.
Crude under pressure
Despite Tuesday’s price rise, traders said crude remained under pressure due to concerns a fresh wave of COVID-19 infections elsewhere in the world will hamper demand recovery just as major producers ramp up output.
OPEC boosts this month
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, were boosting output this month by about 1.5 million barrels per day. U.S. producers also plan to restart shut-in production.
In a further sign of a patchy demand rebound, analysts forecast U.S. distillate stockpiles rose while crude and gasoline drew down last week, according to a Reuters poll.
The American Petroleum Institute releases its weekly inventory report at 4:30 p.m., followed by government data on Wednesday.
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