Oil rises on weak dollar, U.S. coronavirus aid hopes

Oil prices gained for the third day on Tuesday, supported by a bounce in demand from efforts to lift the U.S. economy as it struggles to recover from the coronavirus pandemic. 

Prices were also buoyed by a weakening dollar, making it easier for global investors to purchase crude at a cheaper amount.

Brent crude futures rose 0.8%, or 35 cents, at $43.76 per barrel. U.S. West Texas Intermediate crude futures climbed 0.7%, or 27 cents, at $41.87 per barrel.

In the U.S. Senate, the Republicans’ proposed $1 trillion coronavirus aid package gained the White House’s support, although Democrats urged for a bigger fiscal package.

Markets are awaiting the Federal Reserve’s policy-setting panel which will meet on Tuesday and Wednesday, where it is anticipated to confirm that it will keep interest rates near zero for the next few years.

U.S. COVID-19 cases continued to surge as Florida and California took over the top spots as the new epicenters of the virus.

Investors are closely watching the U.S. inventory data due on Tuesday and Wednesday. Refined products stockpiles are anticipated to have contracted last week, while crude oil inventories are expected to have steadied.