Oil records higher with potential demand recovery

Published:

On: Aug 2020

On Tuesday, crude oil increased on higher note, along with prices reinforced by expectations of the stimulus of the United States and a major rebound in Asian demand as economies restart. Hence, the crude oil rose amid indications of further stimulus measures. The lawmakers of the United States continued discussions on coronavirus relief economic package with American Treasury Secretary Steven Mnuchin said that there are many areas where compromise is possible and a decent agreement could be decided upon.

According to the recently issued report, the crude oil prices discovered after the president of the United States of America Donald Trump tweeted that leading congressional Democrats desired to meet with him on COVID-19 related economic relief. The discussions between Democrats and Donald Trump administration broke down previous week.

Analysts said that a weak American dollar also heled assistance higher crude oil prices. After steadying on yesterday the dollar was again dropping on Tuesday, recording 0.1 percent against a pool of currencies and meanwhile, dropping further against dangerous currencies such as Austrian dollar. The United States passenger airline traffic, which was hampered hard by the COVID-19 pandemic. It was decreased by 80 percent in June from a year earlier, as per the official figures, but still almost twice the levels of May.