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Oil rises as broader markets gain on hopes for more stimulus

Published 27/03/2020, 02:57
© Reuters.
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TOKYO, March 27 (Reuters) - Oil prices rose on Friday after
world leaders promised a massive injection of funds to limit the
economic fallout from the coronavirus pandemic, despite fears
the outbreak will destroy demand for oil.
After tumbling for the past four weeks, Brent crude LCOc1
was up 50 cents, or nearly 2%, at $26.84 a barrel by 0116 GMT,
and on track to end the week steady or only slightly lower.
U.S. crude Clc1 was up 60 cents, or 2.7%, at $23.20, and
is heading for a weekly gain of about 3%.
Both contracts are down about 60% so far this year.
Leaders of the Group of 20 major economies pledged on
Thursday to inject over $5 trillion into the global economy to
limit job and income losses from the coronavirus and "do
whatever it takes to overcome the pandemic." The United States has now passed China and Italy as the
country with the most coronavirus cases, according to a Reuters
tally, as the country faced a surge in hospitalizations and
looming shortages in supplies, staff and sick beds. "The U.S. is the most consequential oil demand region in the
world and real-time GPS data suggests an 82% drop in congestion
in major U.S. cities", Capital Economics said in a note.
"Ultimately, U.S. consumption has to lead the way for
meaningful global oil demand recovery," it said.
Still, the availability of funds helped oil prices gain as
other markets rose while more governments roll out additional
stimulus measures to combat the pandemic. MKTS/GLOB

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