Oil steadies below $52 on weak demand

Start of European vaccination campaign balanced by prospect of higher OPEC+ output

LONDON:

Oil steadied on Monday, after earlier rising to $52 a barrel, as optimism over the US stimulus package and the start of a European vaccination campaign was balanced by weak demand and the prospect of higher OPEC+ output.

After US President Donald Trump backed down from a threat to block the $2.3 trillion package, Democrats on Monday will try to push through larger $2,000 relief payments. Europe on Sunday launched a mass Covid-19 vaccination drive.

Brent crude was up $0.06, or 0.1%, at $51.35 a barrel at 1450 GMT, after trading as high as $52.02 earlier in the session. US West Texas Intermediate (WTI) crude fell $0.19, or 0.4%, to $48.04. “The signing of the US stimulus bill, with the possibility of an increased size, should put a floor under oil prices in a shortened week,” said Jeffrey Halley, analyst at broker OANDA.

Oil has recovered from historic lows hit this year as the pandemic hammered demand. Brent reached $52.48 on December 18, its highest since March.

But the emergence of a new variant of the virus has led to movement restrictions being reimposed, hitting near-term demand and weighing on prices.

Published in The Express Tribune, December 29^th, 2020.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.