Oil price buoyed by US economic stimuli
Economic stimulus measures announced in the United States hoisted the price of crude oil on Wednesday (March 25), according to an analyst at Thai Oil.
The US Federal Reserve has unveiled a massive stimulus package and Congress is expected to prove another $2 trillion worth soon.
Meanwhile Indian Prime Minister Narendra Modi ordered 1.3 million people into home self-quarantine for three weeks starting on Wednesday, and that will affect oil demand there, the analyst noted.
The oil price remains under pressure, however, after Saudi Arabia said it would begin exporting up to 10 million more barrels per day in May than the 7.3 million barrels shipping this month.
The American Petroleum Institute said crude oil production in the US for the week ending March 20 dropped to 451.4 million barrels, the first decrease in eight weeks.
The price of benzene fuel rose less than that of Dubai crude oil, a factor blamed on the spread of the Covid-19 virus in the Middle East and increasing supply in India.
Diesel fuel was selling for more than Dubai crude oil, though, gaining support from India, but the virus is also limiting demand.