With less than 24 hours remaining of President-elect Joe Biden’s inauguration as the 46th US President, both US and UK crude oil futures surged nearly 2 per cent on Tuesday as investors were reportedly pricing in on a large-scale pandemic stimulus bill which the President-elect Biden had promised earlier this month, while an upbeat China data coupled with a solid upswing in the Wall Street had helped crude oil futures’ prices wind up the session sharply higher.
In point of fact, crude oil futures’ gain in the day’s commodity market had largely echoed a positive response in the Wall Street ahead of an inauguration of the US President-elect Joe Biden who had proposed a $1.9 trillion in pandemic stimulus bill last week, while market participants’ optimisms took a bullish turn over possibilities that the proposed $1.9 trillion in fresh capital inflows into an ailing US economy would heave up the economy from a pandemic-driven slump.
Besides, investors had also been betting heavily on an upbeat crude oil demand in China, the world’s largest importer of crude oil, as Government data had shown earlier this week that the world’s second-largest economy’s refinery output surged by 3 per cent last year to an all-time high.
Aside from that, Houston-based oil drilling and gas wells services provider Halliburton Co. had forecasted a recovery in crude oil demands as early as by the second quarter of 2021, adding further bullish wing to investors’ optimism.
Crude oil futures’ fathom large gains ahead of Biden inauguration
Citing statistics, in the day’s commodity market round off, UK crude futures scheduled to be expired on March, climbed 2.1 per cent to $55.90 per barrel, while the US West Texas Intermediate crude oil futures’ prices added 1.2 per cent to settle down at $52.98.
Meanwhile, addressing to investors’ hope over a trillion-dollar stimulus bill which in effect would weather the impacts of a deluge of downbeat fiscal data released last week, a head of oil markets in Rystad Energy, Bjornar Tonhaugen said, “As we are approaching the beginning of the Biden administration era in the U.S., traders now have their hopes up for a rapid positive effect on markets coming from the promised ($1.9 trillion) stimulus package”.