Oil rises with stimulus hopes overshadowing gloomy IEA forecast
Oil extended gains in Asia on expectations U.S. President-elect Joe Biden’s incoming administration will take steps to revive growth and energy demand in the world’s largest economy.
Futures in New York edged above $53 a barrel after closing up 1.2% on Tuesday. Treasury Secretary nominee Janet Yellen called on lawmakers to “act big” on stimulus, which could provide a boost to consumption while coronavirus vaccines continue to be rolled out. A weaker U.S. dollar is also increasing the appeal for commodities like oil that are priced in the currency.
The optimism was tempered somewhat as the International Energy Agency cut forecasts for global oil demand as renewed lockdowns to contain the pandemic weigh on consumption. The Paris-based agency lowered its demand estimate for this quarter by 600,000 barrels a day in its monthly report.
