11.08.202010:35:00UTC+00Oil Prices Rise On US Stimulus Hopes

Oil prices rose on Tuesday as signs of economic rebound and hopes for a U.S. stimulus package raised demand expectations for the fuel.

Benchmark Brent crude rose 42 cents, or 0.9 percent, to $45.41 a barrel, while West Texas Intermediate U.S. crude futures were up 54 cents, or 1.3 percent, at $42.48.

China's auto market grew for a fourth straight month, driven by strong stimulus from the government and a robust recovery in demand for commercial vehicles, the China Association of Automobile Manufacturers said in a report.

Sales in China rose by an annual 16.4 percent in July in a sign of sustained recovery for the industry's biggest global market as Beijing eases restrictions and offers favorable policies and subsidies in a bid to revive the economy.

Meanwhile, investors remain hopeful that U.S. Republicans and Democrats will eventually agree a comprehensive stimulus package to limit the economic damage caused by the coronavirus pandemic and boost growth.

U.S. congressional leaders and officials in President Donald Trump's administration said on Monday they were ready to resume coronavirus aid talks.

On the data front, German economic confidence improved notably in August, survey data from the ZEW - Leibniz Centre for European Economic Research showed.

The ZEW Indicator of Economic Sentiment increased unexpectedly to 71.5 in August from 59.3 in July. The score was forecast to fall to 58.0.

Separately, monthly data from the British Retail Consortium revealed that U.K. like-for-like retail sales increased strongly in July as lockdown measures were eased and demand gradually began to return in some places.