2021.02.0808:46:00UTC+00Brent Nears $60/bbl On US Stimulus Hopes

Oil prices rose on Monday, with Brent futures nearing $60 a barrel on the back of tightened global oil supplies and renewed hopes over the passing of the U.S. stimulus package.

Brent crude for April settlement rose 0.7 percent to $59.99 a barrel, while U.S. West Texas Intermediate crude futures were up over 1 percent at $57.43 a barrel, marking the highest level since January last year.

As global supplies tighten and the demand outlook improves with the rollout of vaccines, analysts expect to see further upside in oil prices.

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.

"The U.S. does have fiscal space to take additional relief and support measures," IMF chief Kristalina Georgieva said on Friday as Democrats moved forward with a $1.9 trillion relief plan by approving a budget outline for the proposal.

President Joe Biden says he could deliver the aid package in the coming weeks without Republican support.

U.S. Treasury Secretary Janet Yellen predicted the relief plan could generate enough growth to restore full employment by next year.