Global crude oil prices increased by more than $1 after the US House of Representatives passed a $1.9tn pandemic aid package, which now awaits the US Senate’s approval.
Brent crude futures for May rose $1.07, or 1.7%, to reach $65.49 per barrel while US West Texas Intermediate (WTI) crude futures spiked $1.10, or 1.8%, to reach $62.60 a barrel, Reuters reported.
Axi chief global markets strategist Stephen Innes was cited by the news agency as saying in a note: “Oil prices are recovering this morning in line with most risk assets on the back of the US stimulus bill passing the House and as central banks continue to sabre rattle to ward off market-implied financial tightening.”
Additionally, signs of an improving economy in Asia have boosted oil prices, according to Reuters.
On Sunday, Johnson & Johnson’s (J&J) Covid-19 vaccine was approved by the US Centers for Disease Control and Prevention advisory panel for use in the country. J&J is planning to ship more than 20 million doses by the end of March and 100 million by mid-2021.
Meanwhile, investors are expecting that the scheduled meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, could result in more oil supply to the market.
Innes added: “More supply needs to come onto the market to ensure OPEC+ meets incremental demand and keeps internal discipline ducks in a row.”