Oil prices rose in early trade on Wednesday, adding to solid gains overnight, on expectations the incoming U.S. administration will go ahead with massive stimulus spending that would boost fuel demand and draw down crude stocks.
U.S. West Texas Intermediate crude futures climbed 23 cents, or 0.4per cent, to US$53.21 a barrel at 0155 GMT, building on a 1.2per cent rise on Tuesday.Brent crude futures rose 25 cents, or 0.5per cent, to US$56.15 a barrel, adding to a 2.1per cent gain on Tuesday. "Certainly the expectation is that will support better growth and better demand in the U.S.," said National Australia Bank's head of commodity research, Lachlan Shaw.
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