Oil Prices Increased Before Biden's Inauguration

Oil prices increased before Biden's inauguration. There is a perception that energy demand will increase under Joe Biden's administration in the USA. Oath ceremony of the Elected US President Joe Biden, which will start at 7.30 pm today. Accordingly, the weakening US dollar in the markets and the expectations that the energy demand will increase under the Joe Biden administration, brought the rise in oil prices. Futures contracts were traded on the New York market at around $ 53 a barrel after a 1.2% increase on Tuesday. In her presentation yesterday, Treasury Minister candidate Janet Yellen told senators and representatives to target large sums in the stimulus package. Adding to the weakness in the US dollar, the dollar-priced commodity increased the risk appetite. On the other hand, the IEA (International Energy Agency) is pulling down the global oil demand forecasts and the increase in new types of coronavirus cases and loss of life around the world are dispersing the positive atmosphere in the oil markets. Regarding oil prices, Axi Chief Market Strategist Stephen Innes said: “Investors are pricing a massive stimulus package. When the current supply discipline of OPEC+ combined with the health and economic policies of the Biden administration, oil prices could increase.” West Texas type crude oil for February futures rose 0.7 percent in the Nymex market at 1:15 pm Singapore time and was traded at around $ 53.35 a barrel. Brent oil for March futures rose 2.1 percent on Tuesday, then rose 0.7 percent to $ 56.27 a barrel.