WTI rises above $42 on US stimulus expectations
The American benchmark for the sweet light crude gained ground during Tuesday’s Asian trading hours in hopes for additional US coronavirus stimulus and signs of recovery in China, the world’s second-largest economy.
At press time, a barrel of West Texas Intermediate (WTI) is trading near $42.15, representing 0.5% gain. Prices rose by nearly 1% on Monday.
The black gold picked up a bid after President Trump tweeted Monday that top congressional Democrats wanted to meet him for discussing virus-related economic relief. The talks between Democrats and the Trump administration broke down last week, according to Reuters.
And yet hopes for additional stimulus may not be the only reason for the uptick in oil. Additional bullish pressure looks to be stemming from comments made by Saudi Aramco on Sunday that oil demand is rebounding in Asia with the gradual reopening of economies.
In addition, oil markets seem to be cheering the upbeat China producer price index (PPI) released on Monday, which showed factory deflation eased for the second month in July.
Gains, however, could be capped by lingering US-China tensions. As per the latest reports, China has unveiled a slew of policies to help boost the domestic semiconductor industry. The move comes after the US’ latest sanctions on Huawei exposed China’s reliance on external chipmakers. #WTIgains##CrudeOil#
Reprinted from Fxstreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
-THE END-