Oil rises on hopes of recovery in fuel demand

SINGAPORE, Dec 30 (Reuters) - Oil prices gained more ground
on Wednesday as a U.S. coronavirus fiscal aid package and
expectations of global economic recovery lifted hopes for higher
fuel demand.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose
27 cents, or 0.6%, to $48.27 a barrel, as of 0114 GMT, while
Brent crude futures LCOc1 added 24 cents, or 0.5%, to $51.33 a
barrel.
The Democrat-led U.S. House of Representatives voted to meet
President Donald Trump's demand to increase direct COVID-19 aid
payments to Americans hurting from the pandemic to $2,000.
Asian shares retreated on Wednesday as investors cashed in
on a recent rally, while the euro flirted with highs not seen in
more than 2-1/2 years on as hopes of a gradual global economic
recovery. MKTS/GLOB
Oil prices could gain strength as vaccination programmes
around the world begin next year.
In the short-term, concerns over coronavirus lockdowns are
likely to cap gains.
A new variant of the virus in the United Kingdom has led to
the reimposition of movement restrictions, hitting near-term
demand and weighing on prices, while hospitalizations and
infections have surged in parts of Europe and Africa.
Fossil-fuel demand in coming years could remain softer even
after the pandemic as countries seek to limit emissions to slow
climate change. Major oil companies, such as BP Plc BP.L and
Total SE TOTF.PA , published forecasts that include scenarios
where global oil demand may have peaked in 2019. A Jan. 4 meeting of the Organization of the Petroleum
Exporting Countries (OPEC) and allies including Russia, a group
known as OPEC+, also looms over the market. OPEC+ is tapering record oil output cuts made this year to
support the market. The group is set to boost output by 500,000
barrels per day (bpd) in January, and Russia supports another
increase of the same amount in February.