Crude oil prices increased on expectations of the global economy recovery after the approval of a $1.9tn stimulus bill by the US Senate and the possible reduction in US crude oil inventory.
Brent crude futures for May jumped by $0.32, or 0.5%, to reach $68.56 a barrel while the US West Texas Intermediate (WTI) crude for April increased by $0.19, or 0.3%, to reach $65.24, reported Reuters.
However, price gains are being capped by a stronger dollar and receding uncertainties of Saudi Arabia’s oil supply disruption following the recent attack on the country’s oil facilities.
Axi chief global markets strategist Stephen Innes was reported by the news agency as saying: “Fundamentals remain incredibly supportive, especially with Saudi Arabia in full control pursuing a tight oil policy.
“Brent is currently holding up above $68, suggesting speculators are likely dipping their toes back in after yesterday’s chaos.”
On 8 March, Brent crude oil prices surpassed the $70 a barrel mark after Yemen’s Houthi forces attacked Saudi Aramco’s oil terminal at Ras Tanura using drones and missiles.
Although no casualties or loss of property were reported, Riyadh said that the crude oil prices ended the day lower, according to Reuters.
Last week, the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, decided to maintain production cuts despite rising crude prices.
Meanwhile, investors remain focused on the prospects for recovery of the global economy.
US Treasury Secretary Janet Yellen was cited by the news agency as saying that the approved $1.9tn coronavirus aid package would provide resources required to fuel a ‘very strong’ economic recovery in the country.