More lift for oil from US easy money hopes

Singapore — Oil prices extended gains for a third session on Wednesday, rising alongside broader financial markets on hopes that Washington will soon approve a huge aid package to stem the economic effects of the coronavirus pandemic.

US crude touched a high of $25.24 a barrel early in the session and was at $24.82 a barrel, up 81c, or 3.4%, by 0412 GMT. Brent crude was trading up 75c, or 2.8%, at $27.90 a barrel after rising to a high of $28.29.

The US Congress may vote on Wednesday on the $2-trillion stimulus after Republicans and Democrats said they were close to a deal, with optimism about the package fuelling a surge in stock markets. Still, demand for oil products, especially jet fuel, is falling worldwide as more governments announce nationwide lockdowns to curb the spread of the coronavirus, putting a lid on oil price gains.