Crude oil prices rose sharply and hit a four-month high on Tuesday as worries about energy demand outlook faded further following the European Union leaders agreeing on a stimulus package to help revive euro area economy.
Already, recent positive coronavirus vaccine results from Pfizer, AstraZeneca and BioNTech had boosted hopes that the virus can be prevented and that the global economy will soon be back on a recovery mode.
West Texas Intermediate Crude oil futures for August ended higher by $1.15 or about 2.8% at $41.96 a barrel, the highest settlement since early March. The contract expired today.
WTI Crude oil futures for September moved up $1.00 or 2.4% to $41.92 a barrel.
Brent Crude futures rose $1.37 or about 3.2% to $44.65 a barrel.
EU leaders agreed on a EUR 1.8 trillion package of measures to tackle the exceptional nature of the economic and social situation posed by the coronavirus pandemic.
After four days of marathon talks in Brussels, EU leaders conceded the package worth EUR 750 billion. Accordingly, the bloc will issue debt jointly which would be provided to member nations hit hardest by the Covid-19.
Out of the EUR 750 billion recovery plan, EUR 390 billion will be in the form of grants and EUR 360 billion of low interest rate loans. Now the deal needs to be approved by the parliament of 27 member states.
According to the original plan, EUR 500 billion was allocated for grants and EUR 250 billion in loans.
The material has been provided by InstaForex Company – www.instaforex.com