Oil prices were steady on Tuesday as optimism for further U.S. measures to bolster the economy tempered a demand outlook overshadowed by surge in coronavirus infections across the world.
Brent crude futures inched up 7 cents or 0.2% to $43.48 per barrel at 09:11 West Africa Time while West Texas Intermediate (WTI) crude futures slipped by 11 cents or 0.3% to $41.49 a barrel.
Bonny Light, Nigeria’s premium oil grade, gained 49 cents or 1.12% at $44.12 per barrel on Monday. But another major national grade, Qua Iboe, shed 2.05% or 91 cents to close at $43.50.
Harry Tchilinguirian, Head, Commodity Research at BNP Paribas said
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“Oil continues to trade in a range with its supply fundamentals helping to set a floor while the economic and demand outlook is providing the cap,” said Harry Tchilinguirian, head of commodity research at BNP Paribas.
A huge U.S. fiscal package could help oil prices but is currently deadlocked in negotiations involving Democrats who have made a proposal worth $3 trillion and Republicans who have tabled a $1 trillion plan.
Traders are also on the lookout as the Federal Reserve’s policy-setting panel meets Tuesday and Wednesday where, where it is expected to stress it will keep interest rates close to zero in the years ahead.
Brent crude was deeper in contango at as much as 49 cents a barrel between prices for September and October, relative to 1 cent in early July.
Contango happens when the future price of a commodity is bigger than the spot price.
U.S. stocks data may indicate that refined products storage fell last week while crude oil inventories are projected to have held steady, analysts told Reuters.
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