By Aaron Sheldrick
TOKYO (Reuters) – Oil prices fell on Tuesday after two straight sessions of gains as the passage of a bill on U.S. infrastructure, Chinese exports and the post-pandemic global recovery raised the outlook for the fuel demand.
Brent crude fell 10 cents to $ 83.33 a barrel at 4:10 a.m. GMT, after gaining 0.8% on Monday. US oil fell 6 cents to $ 81.87 a barrel, also after gaining 0.8% the previous day.
US President Joe Biden’s $ 1 trillion infrastructure bill – which passed Congress over the weekend – and better-than-expected Chinese exports have helped paint a picture of a more global economy. expansive.
“The big unknown is whether economies can achieve growth in the current high price environment, or potentially in an even higher price scenario,” said Louise Dickson, senior oil markets analyst at Rystad Energy.
JPMorgan Chase commodities analysts said global oil demand in November had already almost returned to pre-pandemic levels of 100 million barrels per day (bpd).
“More growth in consumption is on the horizon once travel begins in earnest and demand for jet fuel picks up,”
But as major producers maintained strict supply discipline in October, oil prices hit seven-year highs, while the value of fuels rose as well.
Biden, however, could take action as early as this week to deal with soaring gasoline prices, Energy Secretary Jennifer Granholm said on Monday.
“He is certainly looking at the options he has in the limited range of tools a president might have to deal with the cost of gasoline at the pump, as it is a global market,” Granholm told MSNBC in an interview.
Despite the market tightening, US crude inventories are expected to have risen for the third week in a row, according to Reuters polls, which may help cap further gains.
“If the United States fails to get OPEC + to deliver on its promise to increase production, it has its own arsenal of tools to deploy to tackle high prices for refined petroleum products,” said Dickson.
(Reporting by Aaron Sheldrick; Editing by Tom Hogue and Michael Perry)