Crude oil price edges up expecting a lift from US stimulus measures
The price of crude oil rose slightly as hopes rose over US economic stimulus measures and Opec resumed negotiations to maintain crude oil price stability, an energy analyst at Thai Oil said on Tuesday (March 24).
West Texas Intermediate (WTI) and Brent crude oil price increased slightly as investors hoped the US government and Federal Reserve would issue measures to boost the economy impacted by Covid-19, while Saudi Arabia and Russia would resume talks on maintaining crude oil price stability.
UBS, a global firm, expected that oil demand in March this year would decrease by 5 to 10 million barrels per day year on year, while WTI and Brent crude oil price in June this year would remain at US$20 per barrel.
The US Senate has not yet approved a US$2 trillion stimulus package to boost the economy amid the outbreak of Covid-19 virus. The Senate vote on Monday was 49-46, well short of the 60-vote threshold needed to advance the legislation for a final debate.
Benzene fuel prices dropped more than those of Dubai crude oil after India and Indonesia enhanced measures to deal with the Covid-19 outbreak, while China's oil refineries increased benzene fuel production capacity.
Diesel fuel prices dropped to the same level as those of Dubai crude oil as oil demand decreased due to the Covid-19 outbreak, while the demand of diesel fuel dropped after India locked down the country.