Oil soars as US stimulus relieves heavy market sentiment

SINGAPORE- Oil prices continued its positive performance for third day on Wednesday. Crude rode bullish tide together with other financial markets on optimism that the U.S. Federal Reserve will soon implement large volume of stimulus package to minimize the economic impact of the coronavirus contagion.

US West Texas Intermediate CLc1 was at $25.24 per barrel in early hour of its regular session. It added 81 cents, equivalent to 3.4%, and was quoted $24.82 at exactly 0412 GMT. Brent crude LCOc1 hiked with 75 cents, equivalent to 2.8%, and last stood at $27.90 per barrel. The Brent beat its previous record of $28.29.

The U.S. Congress is set to decide on Wednesday regarding the $2 trillion stimulus after Republicans and Democrats disclosed that they are heading to an arrangement. It boosted market sentiment as investors anticipate stock market recuperation.

However, there is still a slump in oil demand across all zones as more countries pronounce nationwide lockdowns and international travel restrictions to negate the further spread of the coronavirus.