Oil rose on Tuesday, for the third time in four sessions, on expectations for rising fuel demand as the United States may expand their pandemic aid payments and a final Brexit deal is set to stabilize trade between Europe and the UK.
Brent crude futures climbed 36 cents, or 0.7%, to $51.22 a barrel, as of 0151 GMT and U.S. West Texas Intermediate (WTI) crude futures added 34 cents, or 0.7%, to $47.96 a barrel.
Crude rose along with a gains in Asian shares, with Japanese stocks hitting a 29-year high, on rising investor risk appetite as the U.S. House of Representatives voted to raise pandemic relief payments to $2,000 from $600. The Senate still needs to vote on the measure.
Forecasts for tightening U.S. crude oil stocks also added support to prices.
U.S. crude oil stockpiles are expected to have declined last week, while refined products inventories likely rose, a preliminary Reuters poll ahead of this week’s data showed on Monday.
Five analysts said that crude stocks likely fell by 2.1 million barrels in the week to Dec. 25.
Still, concerns over coronavirus lockdowns are capping gains.