Oil rises on US stimulus hopes

Oil prices continued to rise as the US market opened on Monday, to resume gains after taking a pause on Friday on profit-taking from a 13-month high. Today's rebound comes thanks to hopes about the US stimulus measures and the latest positive updates regarding the Covid-19 vaccines.

US crude rose 2.2% to $62.90 a barrel, after opening at $61.53, and hit a low of $61.53, and Brent crude rose 2.2% to $65.90 a barrel, after opening at $64.50, and hit a low of $64.50.

US crude lost 3.0% on Friday, and Brent crude futures fell 3.9%, in their second straight daily loss on profit-taking from a 13-month high.

Oil prices gained around 17.5% during, in the fourth consecutive monthly gain, as the oversupply concerns receded after OPEC Plus compliance with the agreed supply cuts and Saudi Arabia's voluntary cut.

The US House of Representatives passed a $1.9 trillion Covid-19 relief package on Saturday, after the Democrats who control the House passed the bill by 219 votes to 212 votes, and the bill was sent to the Senate for a final vote.

The US Food and Drug Administration (FDA) approved on Saturday the emergency use of the Johnson & Johnson's Covid-19 vaccine, making it the third vaccine that will be widely used in the US.

This vaccine is taken in only a single dose, and can be stored in normal cold temperatures, which makes it easier for distribution in most parts of the world.

US officials said that initial shipments have already started on Sunday, and Johnson & Johnson expects to ship more than 20 million doses by March 30 and 100 million doses by the middle of this year.