Offshore mobile drilling units are stationed at Port of Cromarty in Cromarty, UK, on Tuesday, June 23, 2020.
Jason Alden | Bloomberg | Getty Images
Oil prices rose more than $ 1 on Monday on optimism in the global economy thanks to progress in a major U.S. stimulus package and hopes for improved oil demand as vaccines are released.
Brent crude times for May rose $ 1.07, or 1.7%, to $ 65.49 per barrel before 0042 GMT. The April contract expired on Friday.
US West Texas Intermediate (WTI) crude futures jumped $ 1.10, or 1.8%, to $ 62.60 a barrel.
“Oil prices are recovering this morning in line with most of the risk funds behind the U.S. stimulus bill passing the House and how central banks continue to “Alleviate market – driven financial tensions,” Stephen Innes, Axi ‘s chief global markets strategist, said in a note on Monday.
The U.S. House of Representatives released a $ 1.9 trillion coronavirus relief package early Saturday. The Democrats who control the chamber approved the sweeping step by a majority vote of 219 to 212 and sent it to the Senate, where the Democrats were planning a legislative motion to allow to pass without the support of the Republicans.
Positive news about the coronavirus vaccine face and signs of a recovering Asian economy were also raising prices.
The advisory panel of the U.S. Centers for Disease Control and Prevention voted unanimously on Sunday to recommend Johnson & Johnson’s COVID-19 bullet for widespread use, and U.S. officials said the first vessels would begin Sunday.
J&J expects to dispense more than 20 million doses by the end of March and 100 million by noon, enough to vaccinate nearly a third of Americans.
Over in Japan, a private study showed that factory activity was expanding at the fastest pace in more than two years in February, contributing to signs of a slowdown in Asian growth.
On the flip side, investors are pledging that this week ‘s meeting of the Organization of Petroleum Exporting Countries (OPEC) and friends, an organization called OPEC +, will bring more supplies back to the market.
“More supply needs to come on the market to ensure OPEC + meets demand gradually and keeps control ducks in line,” Innes said.