Oil prices have increased almost 1% on the expectations that fiscal stimulus measures to be taken by Japan and China will enable a global economic slowdown.
International Brent crude oil futures were up 0.98% at $62.10 per barrel, while US West Texas Intermediate (WTI) crude futures rose 0.89% and were at $53.48 per barrel, Reuters reported.
Concerns of a global economic slowdown are expected to impact financial markets.
Prices gained some support after China and Japan announced they would take stimulus measures to improve growth.
China is expected to increase fiscal spending to support its economy, after it registered its lowest growth rate since 1990 last year.
At its policy review, the Bank of Japan retained its ultra-easy monetary settings that have been in place since 2013.
Saxo Bank chief economist Steen Jakobsen said that ‘the global economy is suffering’, but added that the Chinese Government would ‘do all it can for stability’.
Production reductions led by the Organization of the Petroleum Exporting Countries (OPEC) also gave some support to oil prices this year.
The success of the oil cartel’s efforts will depend on the development of crude output in the US, which witnessed a 2Mbpd increase to 11.9Mbpd last year.
According to the US Energy Information Administration (EIA), shale output is expected to increase further.