Oil extends gains towards $40 on optimism for more US stimulus

Oil extended gains in Asia on growing optimism for more U.S. fiscal stimulus to help lift the world’s largest economy out of recession.

Futures in New York were up 0.5%, after surging 5.9% on Monday to post the biggest daily gain since May. President Donald Trump said in a tweet that he would leave hospital on Monday evening, easing concerns over his health. His diagnosis with Covid-19 has been viewed by markets as boosting the prospects both for fiscal stimulus and an easier election win by his Democratic opponent Joe Biden.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin engaged in another round of talks Monday on a pandemic relief package, with no sign they are close to deal, despite Trump’s urging to get it done.