Oil yields overnight gains amid optimism of U.S. massive stimulus

Shafaq News/ Oil prices rose on Wednesday, adding to solid gains overnight, on prospects the new U.S. administration will go ahead with massive stimulus expenditures that would boost fuel demand and draw down inflated crude stocks. 

U.S. West Texas Intermediate (WTI) crude futures climbed 40 cents, or 0.76%, to $53.38 a barrel at 5:21 GMT, building on a 1.2% rise on Tuesday crude stocks.

Brent crude futures rose 37 cents, or 0.66%, to $56.25 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.

However, the market remains concerned about near-term oil demand as the International Energy Agency cut its outlook for first-quarter oil demand by 580,000 barrels per day, due to tight lockdowns and border closures to stop soaring COVID-19 caseload.

China's capital, Beijing, on Wednesday announced stricter COVID-19 control measures and will shut down a subway station after the city reported its biggest daily surge in new COVID-19 cases in more than three weeks.

Traders will be watching out for U.S. crude and products inventory data due from the American Petroleum Institute on Wednesday and from the Energy Information Administration on Friday.