Oil Up Over Hopes of $1 Trillion US Aid Package

Tuesday,   28-Jul-2020   09:00 AM (IST)

Oil was up on Tuesday morning in Asia, backed by hopes that the U.S. will pass another stimulus bill which put pressure on the dollar and supported equities. Brent oil futures rose 0.30% to $44.14 by 9:50 PM ET (2:50 AM GMT) and  WTI Futures also rose 0.24% to $41.70, rebounding from losses on Monday. In the U.S., Senate Republicans proposed a $1 trillion COVID-19 aid package that would include $1,200 payments to Americans, as well as incentives for the manufacture of personal protective equipment in the United States, rather than China. The package also includes $190 billion in for small businesses and $100 billion in loans to businesses that operate seasonally or in low-income areas. The proposed package cheered investors and helped weaken the dollar, which boosted both stock and oil prices. However, oversupply remains an issue for investors who will be looking closely at figures from the American Petroleum Institute (API) that will be released later in the day.