Oil extends gains on hopes of US stimulus

Bloomberg

Brent oil extended gains to above $56 a barrel, rising with other assets on hopes of more US economic stimulus.
While crude prices have undulated with the dollar and broader risk assets in recent days, it’s also being supported by renewed strength in the market’s structure.
US crude’s closest contract is near the most expensive versus those for six months out in more than a year. It’s a similar picture for Brent. The structure, known as backwardation, indicates tight supply.
The International Energy Agency this week said it expects inventories to fall by 100 million barrels this quarter, despite a surge in Covid-19 outbreaks.
Traders have piled into oil this year, with output cuts from Saudi Arabia helping drive prices to the highest since February.