Tuesday, January 18

Oil prices climb as Trump’s return to White House calms nerves

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“It’s the supply-side factors that have changed in the last 24 hours and are contributing more to the uplift,” said Lachlan Shaw, head of commodity research at National Australia Bank.

The Norway strike will cut the country’s total output capacity by just over 330,000 barrels of oil equivalent per day, or about 8% of total production, according to the Norwegian Oil and Gas Association.

Meanwhile hopes for a bipartisan US economic relief package grew as House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke on Monday and prepared to talk again Tuesday, in a concerted effort to reach a compromise on legislation.

“There’s better (fuel) demand sentiment surrounding the potential for US fiscal agreement, and perhaps President Trump leaving hospital might drive a bit of impetus to conclude a deal there,” Shaw said.

Data from the American Petroleum Institute on Tuesday and the US government on Wednesday will provide a picture of whether demand is picking up.

Five analysts polled by Reuters estimate, on average, that crude stocks rose by 400,000 barrels in the week to Oct. 2, while gasoline inventories likely fell by 900,000 barrels and distillate stockpiles, which include diesel and heating oil, likely dropped by 1.4 million barrels .

(Reporting by Sonali Paul in Melbourne and Seng Li Peng in Singapore; Editing by Kenneth Maxwell, Richard Pullin & Simon Cameron-Moore)