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Oil is slipping after gains on rosier outlook for the global economy and fuel demand

A pump jack stands idle in Dewitt County, Texas January 13, 2016. REUTERS / Anna Driver

TOKYO, Nov. 9 (Reuters) – Oil prices fell on Tuesday after two consecutive gains as the passage of a U.S. infrastructure bill, Chinese exports, and post-pandemic global recovery improved the outlook for fuel demand.

Brent crude fell 10 cents to $ 83.33 a barrel by 0410 GMT after rising 0.8% on Monday. US oil fell 6 cents to $ 81.87 a barrel, also after gaining 0.8% the previous day.

US President Joe Biden’s long-delayed $ 1 trillion infrastructure draft – which went through Congress over the weekend – and better-than-expected Chinese exports helped paint a picture of a more expansive global economy. Continue reading

“The big unknown is whether economies can grow in the current high price environment or possibly in an even higher price scenario,” said Louise Dickson, senior oil market analyst at Rystad Energy.

JPMorgan Chase commodity analysts said global oil demand almost returned to pre-pandemic levels of 100 million barrels per day (bpd) in November.

“If travel starts in earnest and the demand for kerosene increases, further consumption growth awaits”,

But as the big producers maintained strict delivery discipline in October, oil prices rose to a seven-year high, and fuel values ​​rose too.

However, Biden could take action as early as this week to tackle soaring gasoline prices, Energy Secretary Jennifer Granholm said on Monday.

“He’s certainly looking into what options he has in the limited range of tools a president may have to cover gasoline costs at the pump as this is a global market,” Granholm told MSNBC in an interview. Continue reading

Despite the tighter market, US crude oil inventories are likely to have risen for the third straight week, Reuters polls showed, which may help limit further gains.

“If the US doesn’t get OPEC + to respond to its pledge to increase production, it will have its own arsenal of tools to combat high prices for refined oil products,” said Dickson.

Reporting by Aaron Sheldrick; Editing by Tom Hogue and Michael Perry

Our Standards: The Thomson Reuters Trust Principles.

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