Oil prices rebounded more than 1 on Monday after the U.S. House of Representatives passed a huge stimulus package, although a slowdown in Chinas February factory activity growth capped gains.
Brent crude futures for May rose 1.24, or 1.9, to 65.66 per barrel by 0718 GMT. The April contract expired on Friday.
U.S. West Texas Intermediate WTI crude futures jumped 1.18, or 1.9, to 62.68 a barrel.
Frontmonth prices for both contracts touched 13month highs last week, slipping back on Friday along with wider financial markets following a bond rout amid inflation fears.
Oil prices are recovering this morning in line with most risk assets on the back of the U.S. stimulus bill passing the House, Stephen Innes, chief global markets strategist at Axi, wrote in a note on Monday.
The U.S. House passed a 1.9 trillion coronavirus relief package early on Saturday, lifting investors risk appetite and Asian stock markets. The package will now move to the U.S. Senate for further deliberation.
The approval of Johnson Johnsons COVID19 shot also buoyed the economic outlook.
Manufacturing data from top Asian oil importers were mixed, however, as Chinas factory activity growth slipped to a ninemonth low in February, while manufacturing in Japan expanded the fastest in more than two years.
Crude supplies going into top importer China are expected to ease in the second quarter as the oil price rally cooled demand. Preliminary data also showed that South Koreas February imports were down…