Oil Extends Gains On Hopes Of U.S. Stimulus And Crude Stocks Drawdown

• Oil prices rose in early trade on Wednesday, adding to solid gains overnight, on expectations the incoming U.S. administration will go ahead with massive stimulus spending that would boost fuel demand and drawdown crude stocks.
• U.S West Texas Intermediate (WTI) crude futures climbed 23 cents, or 0.4%, to $53.21 a barrel, building on a 1.2% rise on Tuesday. Brent crude futures rose 25 cents, or 0.5%, to $56.15 a barrel, adding to a 2.1% gain on Tuesday.
• U.S President-elect Joe Biden's Treasury Secretary nominee Janet Yellen urged lawmakers on Tuesday to "act big" on pandemic relief spending, reinforcing hopes of massive spending to boost growth.
• The oil market continued to rise despite the International Energy Agency has cut its outlook for first-quarter oil demand by 580,000 barrels per day, due to tight lockdowns in Europe and border closures to stop soaring COVID-19 infections.

(Source: Reuters)