Oil firms on U.S. stimulus hopes, Asian demand recovery

* U.S. coronavirus stimulus hopes lead price recovery
* Saudi Aramco (SE:2222) CEO sees oil demand rebounding in Asia

By Naveen Thukral
SINGAPORE, Aug 11 (Reuters) - Crude oil gained more ground
on Tuesday, with prices underpinned by expectations of U.S.
stimulus and a rebound in Asian demand as economies reopen.
Brent crude LCOc1 added 7 cents, or 0.2%, to $45.06 a
barrel, as of 0027 GMT. West Texas Intermediate U.S. crude
CLc1 rose 14 cents, or 0.3%, to $42.08 a barrel.
"Crude oil gained amid signs of further stimulus measures,"
ANZ said in a note.
"U.S. lawmakers continued negotiations on the massive virus
relief economic package with Treasury Secretary Steven Mnuchin
saying there are areas where compromise is possible and a fair
deal could be agreed upon. Sentiment was also boosted by
comments from Saudi Aramco that demand is improving."
Prices found support after U.S. President Donald Trump
tweeted that top congressional Democrats wanted to meet with him
on coronavirus-related economic relief.
The talks between Democrats and the Trump administration
broke down last week.
On Sunday, Saudi Arabian Aramco CEO Amin Nasser said he sees
oil demand rebounding in Asia as economies gradually open up.
China's factory deflation eased in July, driven by a rise in
global oil prices and as industrial activity climbed back
towards pre-coronavirus levels, adding to signs of recovery in
the world's second-largest economy. Iraq said on Friday it would cut its oil output by a further
400,000 barrels per day in August and September to compensate
for its overproduction in the past three months.
The move would help it comply with its share of cuts by the
Organization of the Petroleum Exporting Countries and allies,
known as OPEC+.
Energy companies have begun taking back millions of barrels
of oil from the U.S. government's emergency stockpile after
renting storage in the facility to help manage a glut of crude
this spring after energy demand collapsed during COVID-19
lockdowns, a Department of Energy website showed on Monday.