Oil gain-streak ends as fuel demand outlook brightens

Oil prices dropped on Tuesday, ending two straight sessions of gains after the passage of a U.S. infrastructure bill, Chinese exports, and the global post-pandemic recovery boosted fuel demand outlook.

Brent crude shed 10 cents to $83.33 per barrel by 0410 GMT after adding 0.8% on Monday. U.S. West Texas Intermediate (WTI) also declined by 6 cents at $81.87 per barrel. WTI likewise gained 0.8% on Monday.

U.S. President Joe Biden’s overdue $1 trillion infrastructure bill combined with better-than-expected Chinese exports to project the image of a more expansive global economy.

Commodities analysts from JPMorgan Chase remarked that the global demand for oil in November has nearly almost returned to pre-pandemic levels of 100 million barrels per day (bpd).

However, as key producers kept a strict supply discipline in October, oil prices soared to seven-year highs, with fuel values rising in tandem.

U.S. Energy Secretary Jennifer Granholm said on Monday that Biden may take steps as early as this week to combat the rising gasoline prices.