Oil rises, hovers below $50/bbl as US mulls stimulus, OPEC+ compromises

Brent crude oil futures rose to just under $50 a barrel on Friday as expectations of a US economic stimulus package and the possibility of a vaccine for the coronavirus overrode rising supply and increased Covid-19 deaths.

A bipartisan $908 billion coronavirus aid plan gained momentum in the US Congress.

Brent was up 42 cents at $49.13 a barrel by 11:19 a.m. EST (1619 GMT) after hitting its highest since early March at $49.92. West Texas Intermediate rose 46 cents to $46.10 a barrel, after touching a high of $46.68 a barrel. Both benchmarks are set for a fifth straight week of gains.

“We’re higher, despite super bearish events – it’s all about the stimulus,” said Bob Yawger, director of energy futures at Mizuho in New York. “You can’t go home short this weekend because they could sign a deal this weekend.”