On Tuesday morning, the oil prices once again got rosier and touched heights. It was the third session in a row. The outlook was uplifted by the fuel demand outlook following the Chinese exports, the US infrastructure bill and the post-pandemic recovery globally.
Brent crude shot up to USD 83.51 per barrel, rising by 8 cents at 0220 GMT. Moreover, it had gained 0.8 per cent on Monday. Meanwhile, the US oil reached USD 82.03, up by 10 cents. It had also surged by 0.8 per cent the previous day.
The long-delayed bill of USD 1 trillion for infrastructure from US President Joe Biden was passed by Congress during the weekend. Moreover, the extraordinary Chinese exports painted a picture of expanding the global economy. That led industries to raise the demand.
As per JPMorgan Chase, commodities analyst, the consumption will grow as travel picks up and jet fuel is required for moving one place to the other.
One of the US banks said that oil demand was back to the pre-pandemic stage in November already. It reached 100 million BPD (barrels per day). It exhibits exponential growth.
However, following the strict supply maintained by major producers, oil prices surged to seven year high in October, with the values of fuel also witnessing a rise.
Meanwhile, Joe is expected to take some serious measures during the current week for addressing rising gasoline rates. Jennifer Granholm, Energy Secretary told on Monday.
In an interview, Granholm said that he was certainly finding the options from the limited range he got as tools. She said, a president had to address the price of gasoline even at the pump due to the global market.
The US crude inventories may have rose a third straight week, despite the tighter market. It will possibly help to further cap gains.