Oil gains on U.S. coronavirus relief hopes, demand recovery

Crude oil rose on Tuesday as prices were supported by hopes for a U.S. coronavirus stimulus and a boost in Asian demand amid reopening economies.

Brent crude rose 0.5%, or 22 cents, at $45.21 per barrel. U.S. West Texas Intermediate crude grew 0.8%, or 32 cents, at $42.26 per barrel.

Prices gained a floor after U.S. President Donald Trump said in a tweet that top congressional Democrats wanted to meet with him regarding the coronavirus relief aid.

The negotiations between the Trump administration and Democrats fell apart last week as the coronavirus deal failed to push through. 

Still, a weaker dollar supported higher oil prices.

China’s factory deflation eased in July after a rise in global oil prices and industrial activity recovered to pre-pandemic levels, showing signs of economic recovery in the country.

Meanwhile, energy companies began taking back millions of oil barrels from the U.S. government’s emergency inventories after renting storage in spring due to the collapse in demand.