2021.01.1208:58:00UTC+00Oil Prices Rise On Hopes Of More US Stimulus

Oil prices rose on Tuesday amid the prospect of increased fiscal stimulus in the United States.

Brent crude for March settlement climbed 1.1 percent to $56.27, after having declined 0.6 percent on Monday.

West Texas Intermediate crude futures for February delivery were up as much as 1.5 percent at $53.05, after rising 1 percent in the previous session.

U.S. President-elect Joe Biden has called for a $2000 "stimulus checks" to his fellow Americans as he prepares to assume the presidency on January 20.

"$600 is simply not enough when you have to choose between paying rent or putting food on the table," Biden said on Sunday.

Meanwhile, the International Energy Agency said a "big chunk" of U.S. shale is profitable at current prices.

Many producers will be able to boost output and U.S. shale will be needed to fill the gap in the oil balance in the short term, IEA Director Fatih Birol said during a Bloomberg television interview.

Goldman expects Brent oil prices to reach $65/bbl in summer 2021, helped by Saudi Arabia's decision to cut its oil output and the implications of a shift in power to the Democrats in the United States.