Oil becomes more expensive due to the strengthening of economic support in the United States

Нефть дорожает за счет усиления мер экономической поддержки в США

Oil prices rose on Tuesday, boosted by hopes that the U.S. will soon adopt a package of economic support measures in the fight against coronavirus by $2 trillion, which could weaken the economic impact of the pandemic and to support the demand for oil.

This is evidenced by exchange trading on the website Investing.com.

The cost of may futures for Brent crude on London’s ICE Futures exchange was $to 28.02 per barrel, at $0.99 (3,66%) above the price of closing of previous session. At the end of trading on Monday, the futures have risen in price on 0,2% – to $27,03 per barrel.

Futures for WTI crude oil for may in electronic trading on the new York Mercantile exchange (NYMEX) rose $1,09 (about 4.67%) to $24,45 per barrel. Yesterday, the contract price increased by 3.2% to $23,36 per barrel.

“Oil prices are rising primarily on the back of a weaker dollar caused by the unprecedented measures of the fed,” said Edward Moya, chief market analyst at brokerage OANDA.

The Federal reserve on Monday introduced a range of programs for large companies, households and small businesses, citing the economy facing “enormous difficulties” due to pandemic coronavirus.

Treasury Secretary Steven Mnuchin on Monday urged the Senate to quickly approve a massive package of economic support, saying that he urgently needed to support small businesses, employees and companies of such industries as aviation, amid the outbreak of coronavirus.

As of 09:15 Moscow time the price of Brent oil is set at the level of 28.23 per barrel. At the opening of Brent was trading at 27,52 dollars per barrel, which is 49 cents above the closing level ($27,03).