Oil up on hopes of recovery in demand, lower US inventories
Oil gained more ground on Wednesday as a US coronavirus fiscal aid package and a decline in crude oil inventories lifted prices.
Brent crude futures rose 19 cents, or 0.4%, to $51.28 a barrel, by 0255 GMT and US West Texas Intermediate (WTI) crude rose 29 cents, or 0.6%, to $48.29.
“Oil prices have remained supported by a weaker US dollar overnight and have finally found a friend in the API inventory report,” said Stephen Innes, chief global market strategist at Axi, a broker.
“This morning the American Petroleum Institute reported a much larger draw versus consensus in crude oil inventories for the week ending December 25.”
The dollar fell to its lowest in more than two years against the euro as currency traders looked past a new delay in US stimulus cheques and maintained bets that additional financial aid was still likely.
