Oil prices rose for a third straight session on Tuesday as the passage of a U.S. infrastructure bill, Chinese exports and the global post-pandemic recovery lifted the outlook for fuel demand.
Brent crude was up 8 cents at $83.51 a barrel by 0220 GMT, after gaining 0.8% on Monday. U.S. oil was up 10 cents at $82.03, also after a 0.8% gain the previous day.
Brent crude has climbed 62% this year to almost $84 a barrel thanks to the global economic recovery from the coronavirus pandemic and OPEC+’s supply cuts, which started early last year.
U.S. President Joe Biden’s long-delayed $1 trillion infrastructure bill — which passed through Congress at the weekend — and better-than-expected Chinese exports helped paint a picture of a more expansive global economy.
“More consumption growth lies in wait once travel begins in earnest and jet fuel demand picks up,” JPMorgan Chase commodities analysts said in a note.
The U.S. bank also said global demand for oil in November was already nearly back to pre-pandemic levels of 100 million barrels per day (bpd).
But as major producers maintained strict supply discipline in October, oil prices rose to seven-year highs, with fuel values also rising.
Biden, though, may take measures as early as this week to address soaring gasoline prices, Energy Secretary Jennifer Granholm said on Monday.
“He’s certainly looking at what options he has in the limited range of tools a president might have to address the cost of gasoline at the pump, because it is a global market,” Granholm told MSNBC in an interview.
Despite the tighter market, U.S. crude inventories are expected to have risen a third straight week, a Reuters survey showed at the end of October that traders expected the Saudis to raise the price of Arab Light for Asia in December by between $0.30 and $0.90 a barrel over the $1.30 per barrel premium to the Oman/Dubai average for November.