Oil steadies below $52 on weak demand
Informal talks between ministers are set to take place on Saturday. PHOTO: REUTERS
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 29th, 2020.
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