Oil prices rise on U.S. stimulus hopes, weaker U.S. dollar

Oil prices rise on U.S. stimulus hopes, weaker U.S. dollar
  • Clock-gray 07:30
  • calendar-gray 28 July 2020

Oil prices rose for a third straight day on Tuesday, buoyed by support for demand coming from efforts to stimulate the U.S. economy’s recovery from the coronavirus crisis and a weakening of the dollar that makes crude cheaper for global buyers, APA reports quoting Reuters.

Brent crude futures climbed 35 cents, or 0.8%, to $43.76 a barrel at 0118 GMT, adding to a 0.2% gain on Monday. 

U.S. West Texas Intermediate (WTI) crude futures gained 27 cents, or 0.7%, to $41.87 a barrel, building on a 0.75% rise on Monday. 

U.S. Senate Republicans on Monday proposed a $1 trillion coronavirus aid package worked out with the White House to revitalise the economy with expanded unemployment benefits for millions due to expire this week, although Democrats urged more support. 

Further aiding the stimulus, the U.S. Federal Reserve’s policy-setting panel meets on Tuesday and Wednesday, where it is expected to reiterate it will keep interest rates near zero for years to come.

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