By Jessica Jaganathan
SINGAPORE (Reuters) – Oil prices rose on Tuesday due to the expectation of a recovery in the world economy after the US Senate approved a stimulus bill of 1.9 billion dollars and that the stockpile of crude oil in the United States, the world’s largest fuel consumer, would likely be reduced.
But a stronger dollar and declining fears of a halt in supply from Saudi Arabia, the world’s largest oil exporter, following an attack on its export facilities, have hampered price increases.
Brent crude futures for May rose 53 cents, or 0.8%, to $ 68.77 a barrel at 0436 GMT, while US West Texas Intermediate (WTI) oil for April rose 44 cents, or 0, 7%, up to $ 65.49.
“Fundamentals remain incredibly supportive, especially with Saudi Arabia in full control following a strict oil policy,” Stephen Innes, chief global market strategist at Axi, said in a note.
On Monday, the price of crude oil for Brent rose to more than $ 70 a barrel after Yemen’s Houthi forces fired drones and missiles into the heart of the Saudi oil industry, including a vital Saudi Aramco plant in Ras Tanura. for the export of petroleum.
Riyadh said there were no casualties or loss of property and that prices ended the day lower.
The United States has nevertheless expressed concern about ‘genuine security threats’ to Saudi Arabia from Yemen’s Iran-organized Houthis and elsewhere in the region, and said it would look at improving support for Saudi defense.
The attacks came after the Organization of the Petroleum Exporting Countries (OPEC), Russia and their oil-producing allies, known as OPEC +, agreed last week to keep pace with production cuts despite rising crude prices.
Meanwhile, investors’ focus remains on the prospects for a global economic recovery.
U.S. Treasury Secretary Janet Yellen said Monday that President Joe Biden’s $ 1.9 billion coronavirus aid package will provide enough resources to fuel a “very strong” economic recovery in the United States. The House of Representatives must still pass the Senate version of the package to become law.
U.S. stocks of crude oil and refined products were likely to fall last week, with distillate stocks declining for the fifth consecutive week, a preliminary Reuters poll showed Monday.
“The fundamentals have not changed for oil at all, and some investors will automatically buy crude oil on any decline,” says Edward Moya, senior market analyst at OANDA.
(Posted by Jessica Jaganathan; Edited by Richard Pullin and Christian Schmollinger)