Economic Optimism Boosts Crude – 18 January, 2021

Hopes that government stimulus will help boost global economies pushed oil slightly higher on optimism that demand will rise. Brent crude futures were up 0.3% or 17 cents for March to $54.92 per barrel, having fallen 35 cents the previous session. U.S. West Texas Intermediate crude was 0.2% or 11 cents lower to $52.25 per barrel. Data showing refinery output for China, the worlds top crude oil importer, was up 3%, intriguing investors about the possibilities of ramped up demand. Additional supply cuts by Saudi Arabia has also helped support prices, with the country expecting to draw down global inventories by 1.1 million barrels per day.