Oil prices rise after US agrees $1tn infrastructure deal
Oil prices have continued to recover after US congress passed Joe Biden’s $1tn infrastructure deal, improving the global outlook for energy demand.
The package includes major upgrades to roads, railways and broadband across the country and could boost economic growth and demand for fuel.
Oil prices recovered from last week’s mini-slump with Brent crude up one per cent at $83.60 a barrel, after dropping nearly two per cent last week.
WTI oil also gained 89 cents to reach $82.16, having declined almost three per cent through Friday.
Demand for jet fuel also looks set to take off as more governments worldwide make air travel easier with reduced restrictions for coronavirus.
Meanwhile, Saudi Arabia’s state-owned producer Aramco raised the official selling price for its crude.
The Organization of the Petroleum Exporting Countries (OPEC) is sticking to its plan to keep tight reins on oil supply.
It will only raise output by the agreed 400,000 barrels per day from December, despite Biden’s calls for increased oil production ahead of forecast.