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Oil ekes out gains as U.S. stimulus hopes lift global markets

Published 03/25/2020, 09:10 AM
Updated 03/25/2020, 09:20 AM
© Reuters.
LCO
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CL
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* U.S. Congress nears deal on $2 trillion stimulus package
* India joins other countries in nationwide lockdown

By Florence Tan
SINGAPORE, March 25 (Reuters) - Oil prices extended gains
for a third session on Wednesday, rising alongside broader
financial markets on hopes Washington will soon approve a
massive aid package to stem the economic impact of the
coronavirus pandemic.
U.S. crude CLc1 touched a high of $25.10 a barrel early in
the session and was at $24.61 a barrel, up 60 cents, or 2.5%, by
1243 GMT.
Brent crude LCOc1 was trading up 49 cents, or 1.8%, at
$27.64 a barrel.
The U.S. Congress may vote on Wednesday on the $2 trillion
stimulus package which boosted stock markets on Tuesday.
Still, demand for oil products, especially jet fuel, is
falling worldwide as more governments announce nationwide
lockdowns to curb the spread of the coronavirus, putting a lid
on oil price gains. "It will be difficult to lift demand if lockdowns are
announced in many countries and airline services remain
suspended," ANZ analysts said in a note.
"Threats of increasing supplies by OPEC and Russia are other
downside risks for the market," they added, after the
Organization of the Petroleum Exporting Countries and Russia
failed to extend an agreement to cut production and support
prices beyond end-March.
U.S. crude oil stockpiles likely built for a ninth
successive week, while inventories of refined products were
expected to have dropped last week with gasoline set to decline
for the eighth straight week, a Reuters poll showed on Tuesday.
EIA/S
The American Petroleum Institute (API) is scheduled to
release its data for the latest week at 4:30 p.m. EDT (2030 GMT)
on Tuesday, and the weekly report from the Energy Information
Administration (EIA) is due at 10:30 a.m. on Wednesday.

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