"The tightness in the markets comes amid higher demand in Asia and continued supply restrictions from the Opec+ group of producers.
'With US equity markets ending last week at record highs, positive momentum in oil markets also continued, pushing ICE Brent above $59 per barrel for the first time since last February, whilst Nymex WTI put on around $0.60 per barrel d-o-d to narrow the spread between the two benchmarks slightly,' JBC Energy said in a note on Tuesday."
"Prices are also supported by renewed optimism over the US economy, which is likely to see an infusion of $1.9 trillion of stimulus. The world's largest economy is also the hardest hit from the Covid-19 pandemic. The US accounts for more than a quarter of all infections globally and has registered 476,405 deaths as of Tuesday, according to Worldometer, which tracks the pandemic.
A fresh stimulus package would also translate into greater demand for transportation fuels leading to greater gains for the oil markets, according to JBC Energy."