Oil prices edge lower amid doubts over U.S. stimulus, rising coronavirus cases

Oil prices edge lower amid doubts over U.S. stimulus, rising coronavirus cases

Oil prices ticked up on Tuesday alongside rising European shares and amid reports of a blast in Saudi Arabia, trading near 11-month highs.Brent crude was up 32 cents, or 0.6%, at $56.20 by 1433 GMT, while U.S. crude rose 22 cents, or 0.4%, to $52.99. Both contracts rose nearly 1% on Monday and are set to post the third monthly rise in a row.Prices edged up after reports of a blast in the Saudi Arabian capital Riyadh, although the cause remains unclear. In Europe, gains in financial services and chemical sectors helped stocks rise. Risk assets such a equities and oil often move in tandem.Raising the prospect of higher oil demand later in the year, the International Monetary Fund predicted global growth of 5.5% in 2021, an increase of 0.3 percentage points from the October forecast, citing expectations of a vaccine-powered uptick. On the supply side, the Organization of the Petroleum Exporting Countries and its allies' compliance with pledged oil output curbs is averaging 85% in January, tanker tracker Petro-Logistics said on Monday, suggesting the group has improved compliance with supply curb commitments. Also, output from the giant Tengiz field in Kazakhstan, disrupted by a power cut on Jan. 17, will be restored