Comments from a National Australia Bank analyst on oil, via Reuters update:
On the Biden stimulus plan:
- "Certainly the expectation is that will support better growth and better demand in the US"
And, in response to the International Energy Agency having 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.
- "That clearly vindicates the move by Saudi Arabia last week to cut 1 million barrels per day of their own production unilaterally for February and March"
- "The risk right now is around coronavirus lockdowns. We've seen some countries extending lockdowns."
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This is a reasonable summary for oil as it stands. Be wary of how much of bideen's stimulus plan makes it through Congress. Biden has a majority, a razor thin one in the Senate - any Democrat Senator disagreeing with aspects of the plan and voting against could diminish the size of the stimulus. US politics .... its influence on markets persists.