Oil prices rose on Monday, aided by a weak dollar and expected stimulus measures in the United States, but investor sentiment remains strained due to constraints from growing global coronavirus cases and tensions between the United States and China.
US Republicans are expected to unveil a new $ 1 trillion aid package for coronavirus on Monday.
“The massive monetary stimulus has dire consequences for oil,” analysts at Raymond James said in a note, adding that oil prices have historically risen with rising inflation and that the current increase in US money supply is unprecedented.
Rising oil prices have been curbed by China-US escalation. tensions after the closure of the consulates in Houston and Chengdu. Meanwhile, global coronavirus cases have exceeded 16 million.
Production also fell sharply in the United States, although the number of oil rigs in the United States rose last week for the first week of March.
Junior Trader Daniel Dimitrov