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Oil Gains on Rosier Outlook for Global Economy, Fuel Demand

An oil pump is seen at sunset outside Vaudoy-en-Brie, near Paris, France April 23, 2018. REUTERS//File Photo
An oil pump is seen at sunset outside Vaudoy-en-Brie, near Paris, France April 23, 2018. REUTERS//File Photo
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Oil Gains on Rosier Outlook for Global Economy, Fuel Demand

An oil pump is seen at sunset outside Vaudoy-en-Brie, near Paris, France April 23, 2018. REUTERS//File Photo
An oil pump is seen at sunset outside Vaudoy-en-Brie, near Paris, France April 23, 2018. REUTERS//File Photo

Oil prices rose for a third session on Tuesday as the passage of a US infrastructure bill, Chinese exports and the global post-pandemic recovery lifted the outlook for fuel demand.

Brent crude was up 8 cents at $83.51 a barrel by 0220 GMT, after gaining 0.8% on Monday. US oil was up 10 cents at $82.03, also after a 0.8% gain the previous day.

US President Joe Biden's long-delayed $1 trillion infrastructure bill - which passed through Congress at the weekend - and better-than-expected Chinese exports helped paint a picture of a more expansive global economy.

"More consumption growth lies in wait once travel begins in earnest and jet fuel demand picks up," JPMorgan Chase commodities analysts said in a note.

The US bank also said global demand for oil in November was already nearly back to pre-pandemic levels of 100 million barrels per day (bpd).

But as major producers maintained strict supply discipline in October, oil prices rose to seven-year highs, with fuel values also rising.

Biden, though, may take measures as early as this week to address soaring gasoline prices, Energy Secretary Jennifer Granholm said on Monday.

"He's certainly looking at what options he has in the limited range of tools a president might have to address the cost of gasoline at the pump, because it is a global market," Granholm told MSNBC in an interview.

Despite the tighter market, US crude inventories are expected to have risen a third straight week, a Reuters polls showed, possibly helping to cap further gains.

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Egypt Approves $91 Billion Budget for 2025/26

The sun rises in Cairo, Egypt March 25, 2025. (Reuters)
The sun rises in Cairo, Egypt March 25, 2025. (Reuters)
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Egypt Approves $91 Billion Budget for 2025/26

The sun rises in Cairo, Egypt March 25, 2025. (Reuters)
The sun rises in Cairo, Egypt March 25, 2025. (Reuters)

Egypt's cabinet approved a 4.6 trillion Egyptian pound ($91 billion) draft state budget for the financial year that will begin in July, a government statement said on Wednesday, as it continues to tighten its finances under an IMF program.

Expenditures will rise by 18% and revenue by 19% over the current 2024/25 budget. Revenue is expected to hit 3.1 trillion pounds, working out to a deficit of about 1.5 trillion pounds ($30 billion).

The increased expenditure partly reflects elevated headline inflation, which was running at an annual 12.8% in February.

Financial reforms under an $8 billion financial reform program signed in March 2024 with the International Monetary Fund have helped Egypt bring inflation down from a peak of 38% in September 2023.

The IMF this month approved the disbursement of $1.2 billion to Egypt after its fourth review of the program.

The new budget targets a primary surplus of 795 billion pounds, equal to 4% of GDP, up from the 3.5% primary surplus originally targeted in the 2024/25 budget.

The IMF granted the government a waiver in the fourth review after the surplus came in 0.5% of GDP lower than Egypt's earlier commitment.

In its third review in June, the IMF praised Egypt for its "strict control of spending".

The new budget also lowers public debt to 82.9% of GDP from an expected 92% in 2024/25, the cabinet statement said.

The cabinet said 732.6 billion pounds in spending in the new budget would be allocated for subsidies, grants and social benefits, an increase of 15.2%.

The budget increases commodities and bread subsidies by 20% to 160 billion pounds. It will also include 75 billion pounds to subsidize petroleum products, 75 billion pounds to subsidize electricity and 3.5 billion pounds to subsidize natural gas deliveries to households, the statement added.