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UPDATE 7-Oil gains on stimulus optimism ahead of Biden inauguration

Published 19/01/2021, 10:59 pm
Updated 20/01/2021, 05:36 am
© Reuters.

* U.S. Treasury nominee Yellen urges more coronavirus spending

* OPEC cautiously optimistic oil market will recover in 2021

* Halliburton (NYSE:HAL) predicts recovery in the global oil and gas industry

* IEA cuts 2021 oil demand outlook, but sees upturn in second half

* Coming Up: U.S. President-elect Joe Biden inauguration on Wed. (Adds latest prices)

By Scott DiSavino

NEW YORK, Jan 19 (Reuters) - Oil prices climbed with U.S. stock markets on Tuesday ahead of Joe Biden's inauguration as U.S. president on optimism that more government stimulus will eventually lift global economic growth.

Brent LCOc1 futures for March delivery rose $1.08, or 2.0%, to $55.83 a barrel by 1:25 p.m. EST (1825 GMT), while U.S. West Texas Intermediate (WTI) crude CLc1 rose 52 cents, or 1.0%, to $52.88. Front-month February WTI futures expire on Wednesday.

Wall Street's main indexes rose after upbeat earnings from big U.S. banks and comments from U.S. Treasury Secretary nominee Janet Yellen ahead of Biden's inauguration on Wednesday. urged lawmakers to "act big" on the next coronavirus relief package, adding that the benefits outweigh the costs of a higher debt burden. we are approaching the beginning of the Biden administration era in the U.S., traders now have their hopes up for a rapid positive effect on markets coming from the promised ($1.9 trillion) stimulus package," said Rystad Energy's head of oil markets, Bjornar Tonhaugen.

Investors were also upbeat on demand in China, the world's top crude oil importer, after data showed its refinery output rose 3% to a record high in 2020. Co HAL.N , meanwhile, predicted a recovery in the global oil and gas industry from the second quarter after the oilfield services provider beat profit estimates on cost cuts and modest gains in activity following last year's slump. OPEC's secretary general said he was cautiously optimistic the oil market would recover this year from the slump in demand brought about by the coronavirus pandemic. prices rose even though the International Energy Agency (IEA) cut its outlook for oil demand in 2021 but pointed to a recovery in the second half of the year to an annual average of 96.6 million barrels per day.

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