2021.01.2509:23:00UTC+00Oil Edges Higher On Dollar Weakness

Oil prices edged higher on Monday as a weaker dollar coupled with production outages from Libya and Kazakhstan offset concerns surrounding tighter border restrictions and extended Coivd-19 lockdowns.

Benchmark Brent crude for April settlement rose half a percent to $55.52 a barrel, while U.S. West Texas Intermediate crude futures were up 0.6 percent at $52.56 a barrel.

The dollar is under pressure as risk sentiment remained underpinned by U.S. stimulus optimism and ahead of the Federal Reserve's monetary policy meeting this week.

Amid bitter political differences, lawmakers in Washington are getting to work on the $1.9-trillion stimulus proposal from the new president.

Investors expect some additional spending to materialize eventually that will help lift global economic growth.

Meanwhile, market participants remain hopeful that Fed Chair Jerome Powell will provide reassurance after Wednesday's policy meeting that $120 billion of monthly bond purchases won't be tapered any time soon.

On the Covid-19 front, the novel coronavirus pandemic has infected almost 100 million people around the world, with over 2.1 million fatalities.

Mexico's President Andres Manuel Lopez Obrador said on Sunday that he had tested positive for Covid-19 amid the country's deadliest week yet in the coronavirus pandemic.

China reported a climb in new Covid-19 cases, raising fresh concerns about the hit to global fuel demand.