SINGAPORE (Reuters) – Oil prices rose Monday, with Brent futures near $ 60 a barrel, spurred by supply cuts among major producers and hopes for further U.S. economic stimulus measures to boost demand.
Brent crude for April hit a high of $ 59.95 a barrel and was at $ 59.85 before 0041 GMT, up 51 cents, or 0.9%. Last month’s face prices hit $ 60 on February 20, 2020.
US West Texas intermediate crude futures added 54 cents, or 1%, to $ 57.39 a barrel, the highest level since January last year.
“A weak jobs report in the U.S. raised hopes for further stimulus measures,” ANZ analysts said, adding that energy and industrial metals products were benefiting from a greater desire for risk among investors.
A weaker dollar against most currencies Monday also supported commodities, with dollar-denominated commodities becoming more accessible to other currency holders.
At the same time, Saudi Arabia’s pledge of further supply cuts in February and March is behind cuts by other members of the Organization of the Petroleum Exporting Countries and its allies, including Russia, are helping to balancing global markets.
In a sign that supply is tightening, the Brent release settled six months at $ 2.33 on Friday after hitting a high of $ 2.44, the highest level in a year.
However, stronger crude prices are encouraging U.S. producers to increase production, while anti-coronavirus cleaners across parts of Europe and Asia are holding up fuel demand, analysts said.
The U.S. oil rig count, an early indicator of future results, rose to its highest level since May last week, according to energy services firm Baker Hughes Co. [RIG/U]
Reciting with Florence Tan; Edited by Kenneth Maxwell