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SINGAPORE – Oil prices rose more than $ 1 on Monday over optimism in the world economy thanks to progress in a giant US stimulus package and hopes to improve oil demand as vaccines are introduced.
Brent crude futures for May rose $ 1.07, or 1.7%, to $ 65.49 a barrel at 0042 GMT. The April contract expired on Friday.
U.S. crude Texas Intermediate (WTI) crude futures rose $ 1.10, or 1.8%, to $ 62.60 a barrel.
EXXON MOBIL’S TOTAL RESERVE DALLS THROUGH A THIRD TO COVID-19 OIL PRICE DROP
“Oil prices are recovering this morning in line with most of the risk assets at the back of the US stimulus bill that is passing the house, and as central banks continue to scramble to stave off financial financial weakening from the market,” said Stephen Innes, chief strategist of the world market at Axi, wrote in a note on Monday.
The U.S. House of Representatives passed a $ 1.9 billion coronavirus relief package early Saturday. Democrats in charge of the chamber approved the comprehensive measure by a mostly party list vote of 219 to 212 and sent it to the Senate, where Democrats planned a legislative maneuver to pass it without the support of Republicans.
https://www.foxbusiness.com/markets/exxon-mobils-total-reserves-drop-by-a-third-after-covid-19-oil-price-drop. Photographer: Luke Sharrett / Bloomberg via Getty Images (Getty Images)
More positive news about the coronavirus vaccine and signs of an improving Asian economy have also raised prices.
An advisory panel to U.S. Centers for Disease Control and Prevention unanimously voted Sunday to recommend Johnson & Johnson’s COVID-19 shot for widespread use, and U.S. officials said the initial shipment would begin Sunday.
J&J expects to ship more than 20 million doses by the end of March and 100 million by the middle of the year, enough to vaccinate nearly a third of Americans.
In Japan, a private survey showed that manufacturing activity expanded at the fastest pace in more than two years in February, contributing to a repeat of growth in Asia.
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On the other hand, investors are betting that the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies this week, a group known as OPEC +, will bring more supply back to the market.
“More supply needs to come on the market to ensure that OPEC + meets the growing demand and keeps internal discipline ducks in line,” Innes added.