Oil Edges Higher Alongside Equities With Stimulus Hopes Growing - Bloomberg

Oil Edges Higher Alongside Equities With Stimulus Hopes Growing - Bloomberg

Oil gained for a third day as a Democratic sweep in the U.S. stoked optimism around the prospect of more fiscal stimulus under the incoming Joe Biden administration.

The slight rise of less than 1% on Thursday left futures in New York at their highest since late February. Prices tracked a move higher in equities as Democrats are poised to take control of the Senate, House and presidency, setting the stage for additional virus aid that could boost ailing fuel demand.

With the Biden administration taking over and Democrats set to control both chambers, “it looks like stimulus packages will be swiftly approved,” said Gary Cunningham, director at Stamford, Connecticut-based Tradition Energy. “That’s going to hopefully provide enough economic relief to keep petroleum demand elevated.”

PRICES
WTI for February delivery gained 20 cents to settle at $50.83 a barrel Brent for March settlement rose 8 cents to $54.38 a barrel Both benchmarks remain at the highest since late February