Oil prices rebound due to passing of US stimulus bill
- 01 Mar 2021
Gulf Today Report
Oil prices bounced back above $1 on Monday following the passing of a huge stimulus package by the US legislators.
Brent crude futures for May rose $1.07, or 1.7%, to $65.49 per barrel by 04:10 GMT while US West Texas Intermediate (WTI) crude futures jumped $1.01, or 1.6%, to $62.51 a barrel.
Stephen Innes, chief global markets strategist at Axi said, "Oil prices are recovering this morning in line with most risk assets on the back of the US stimulus bill passing the House."
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Crude supplies going to top importers like China are likely to ease as demand for oil price rallies.
OPEC+ would be meeting on Thursday, one of the agendas of the meeting is allowing 1.5 million barrels per day of crude back in the market.
According to analysts at Singapore’s OCBC bank, "we think if the combined (OPEC+) increase does not exceed 500,000 bpd that will be bullish for prices."
