Crude oil prices moved higher on Tuesday, rising further after gains in the previous session thanks to the Federal Reserve’s massive asset-buying scheme.
Optimism about the U.S. Congress agreeing on a near $2 trillion fiscal stimulus bill contributed as well in the commodity’s uptick.
West Texas Intermediate Crude oil futures for May ended up $0.65, or about 2.8%, at $24.01 a barrel.
Brent crude oil futures were up by about $0.12, or nearly 0.4%, at $27.15 around late afternoon.
On Monday, WTI Crude oil futures for May ended up $0.73, or about 3.2%, at $23.36 a barrel.
Notwithstanding today’s gains, there are still concerns about the outlook for near term energy demand.
On Monday, the Fed announced extensive new measures, including an unlimited expansion of its asset purchases, to inject funds into the financial system.
The central bank said it will purchase Treasuries and mortgage-backed securities “in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”
Treasury Secretary Steve Mnuchin and Senate Minority Leader Chuck Schumer, D-N.Y., both expressed optimism this morning that a deal on a nearly $2 trillion stimulus package would be reached today.