2020.08.3109:58:00UTC+00Oil Prices Rise On Stimulus Hopes

Oil prices rose on Monday amid bets that central banks across the world will continue to inject liquidity into the financial system to prop up economies battered by the coronavirus pandemic.

Benchmark Brent crude for November delivery rose 68 cents, or 1.5 percent, to $46.49 a barrel, while U.S. West Texas Intermediate crude futures were up 51 cents, or 1.2 percent, at $43.48 a barrel.

Brent crude futures are set to close out August with a fifth successive monthly price rise, while WTI is on track for a fourth monthly rise.

As Yoshihide Suga, the chief Cabinet secretary and a close ally of Prime Minister Shinzo Abe, emerged as a leading candidate to take over the nation's highest political position in Japan, speculation was rife that the new PM will continue the fiscal and monetary policies that defined the Abe regime.

The ruling Liberal Democratic Party will vote on Sept. 14 to select a new leader to succeed Abe, Jiji news agency reported.

A weak U.S. dollar and a 30 percent cut in term crude supplies in October announced by Abu Dhabi National Oil Company also helped support prices.

The dollar was set for a fourth straight month of losses after Fed Chair Jerome Powell outlined an accommodative policy change last week, which could result in inflation moving slightly higher and interest rates staying lower for longer.

UAE's Abu Dhabi National Oil Company (ADNOC) today announced 30 percent cut to October supplies in order to comply with the United Arab Emirate's commitment to an OPEC+ pact.