Oil rises on hopes U.S. pandemic stimulus will spur fuel demand | Reuters

Oil rises on hopes U.S. pandemic stimulus will spur fuel demand | Reuters

Oil prices climbed on Tuesday on hopes the United States will expand pandemic aid payments, a move that could spur fuel demand and stimulate economic growth.

U.S. West Texas Intermediate (WTI) crude futures settled 38 cents, or 0.8%, higher at $48.00 a barrel, while Brent crude futures settled up 23 cents, or 0.5%, at $51.09 a barrel.

“We are seeing strength in the oil market on the back of progress with the U.S. stimulus package,” said Gary Cunningham, director of market research at Tradition Energy.

The Democratic-led U.S. House of Representatives voted to meet President Donald Trump’s demand to increase direct COVID-19 aid payments to Americans hurting from the pandemic to $2,000.