Oil prices steady as demand concerns offset US stimulus hopes – Gulf Today

Oil prices steady as demand concerns offset US stimulus hopes – Gulf Today

Nordic countries face economic quagmire owing to coronavirus

But losses could be capped by fresh government aid packages that could help fuel demand.

"Oil prices will continue to draw support from the Fed's dovish policy," AxiCorp market strategist Stephen Innes said in a note.

US Senate Republicans on Monday proposed a $1 trillion coronavirus aid package worked out with the White House to revitalise the economy with expanded unemployment benefits for millions due to expire this week, although Democrats urged more support.

Further aiding the stimulus, the US Federal Reserve's policy-setting panel meets on Tuesday and Wednesday, where it is expected to reiterate it will keep interest rates near zero for years to come.

"For oil prices to break out higher, there must be a significant flattening of the US Sunbelt COVID-19 case count curve at a minimum," Innes said.

Traders will be watching out for US inventory data due from the American Petroleum Institute industry group later on Tuesday and the government on Wednesday.

Refined products stockpiles are expected to have declined last week, while crude oil stockpiles are expected to have held steady, five analysts polled by Reuters estimated.

Reuters