Oil, which stalled last week, rose again on Tuesday, fuelled by solid growth expectations in China and optimism that investment and vaccination measures in the U.S. and Europe would clear the horizon for 2021. On Tuesday, U.S. light crude WTI gained 1.2 percent to $52.98 a barrel for Nymex’s February futures contract while maturing North Sea Brent marched 2.1 percent to $55.90.
Investors ignored the latest International Energy Agency (IEA) report, which cut its 2021 forecast for crude oil demand. Markets expect this decline to be felt primarily in the first quarter but expect improvement as immunization campaigns expand in the second quarter and then in the second half.
Gold on Tuesday recovered 0.6 percent to $1,841.20 for the Comex futures contract in February, benefiting in particular from the fall of the dollar.
Janet Yellen, former Federal Reserve boss, who is about to become the first female secretary of the U.S. treasury, defended the economic policy of Joe Biden at her Senate hearing, beginning with the $1,900 billion stimulus package, which would be supplemented by an investment strategy for housing and the green economy.
Without taking into account this country’s debt burden, neither the president-elect nor I propose this aid plan. But right now, with interest rates at historic lows, the smartest thing we can do is hit hard, said Janet Yellen, former Federal Reserve boss, who is about to become the first female secretary of the U.S. treasury.
I think the benefits will far outweigh the costs, especially if we care about helping people who have been in trouble for a very long time, said Yellen, who, unlike the Trump administration, who broke with tradition by regularly commenting on the level of the greenback, also pledged to return to a non-intervention stance on the dollar. And that will eventually weigh on prices of oil as well as of gold.