08.02.202119:23:00UTC+00Crude Oil Futures Settle Sharply Higher

Crude oil prices moved up sharply on Monday, lifted by leading oil producers' decision to cut output, and rising optimism about a big stimulus from the Joe Biden administration.

Amid tighter global supplies, optimism about a pick-up in energy demand, and data showing a drop in new coronavirus cases, analysts are of the view that oil prices may see further upside in the near term.

Adding to the upbeat mood is data showing a fall in new infections rates and signs of progress in U.S. stimulus talks. A weak U.S. jobs report released on Friday also boosted hopes of further stimulus measures.

West Texas Intermediate Crude oil futures for March closed higher by $1.12% or about 2% at $57.97 a barrel.

Brent crude futures for April moved up $1.22 or about 2.1% to settle at $60.56 a barrel.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to extend production cuts till March. Saudi Arabia's decision to cut supply in February and March by 1 million barrels per day contributed as well to the bullish sentiment in the oil market.