Oil Slightly Higher On The Session As US Dollar Slips

Oil has risen in Asia trade on Tuesday, WTI last up $0.23 at 47.85, while Brent is up $0.20 at 51.06. WTI has risen off lows seen late in the session on Monday, but is still within yesterday's range. Oil slipped to start the week as renewed coronavirus concerns globally clouded the demand picture for oil.

• Risk on sentiment was boosted after U.S. President Trump signed off on the coronavirus relief bill, with liquidity thinned out in the festive season. The news that U.S. Pres-elect Biden is planning to invoke the Defense Production Act to boost the production of Covid-19 jabs lent further support to risk appetite.
• The U.S. dollar has slipped in Asia, which has helped support the slight uptick in oil prices. Markets are assessing the chances of the coronavirus relief package making it through the Senate. Current indications are that the Republican controlled Senate will not support the increased amount, casting further uncertainty on the process
• The OPEC+ group looks likely to increase output by 500k bpd from January, while Russia's deputy prime minister said last week Russia would be supportive of additional gradual increases in February. The alliance will meet next week to make a decision on February output levels.