Brent approaches $60 per barrel mark as supply cuts, stimulus hopes lift prices

SINGAPORE: Oil prices rose on Monday, with Brent futures nearing $60 a barrel, boosted by supply cuts amongst key producers and hopes for additional U.S. financial stimulus measures to spice up demand.

Brent crude for April touched a excessive of $59.95 a barrel and was at $59.85 by 0041 GMT, up 51 cents, or 0.9%. Front-month prices final hit $60 on Feb. 20, 2020.

U.S. West Texas Intermediate crude futures superior 54 cents, or 1%, to $57.39 a barrel, the very best since January final yr.

“A weak U.S. jobs report boosted hopes of further stimulus measures,” ANZ analysts stated, including that vitality merchandise and industrial metals benefited from an elevated urge for food for danger amongst buyers.

A weaker greenback in opposition to most currencies on Monday additionally supported commodities, with dollar-denominated commodities changing into extra reasonably priced to holders of different currencies.

Meanwhile Saudi Arabia’s pledge of additional supply cuts in February and March on the again of reductions by different members of the Organization of the Petroleum Exporting Countries and its allies, together with Russia, helps to steadiness world markets.

In an indication that immediate provides are tightening, the six-month Brent unfold settled at $2.33 on Friday after hitting a excessive of $2.44, its widest in a yr.

Still, stronger crude prices are encouraging U.S. producers to extend output, whereas anti-coronavirus lockdowns throughout components of Europe and Asia are retaining a lid on gasoline demand, analysts stated.

The U.S. oil rig rely, an early indicator of future output, rose to its highest since May final week, in accordance with vitality companies agency Baker Hughes Co.