Oil up on expected global economic recovery

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    SINGAPORE- Oil prices rose on Tuesday on expectations of a recovery in the global economy after US Senate approval of a $1.9 trillion stimulus bill and on a likely drawdown in crude oil inventory in the United States.

    But a stronger dollar and receding fears of oil supply disruption from Saudi Arabia after an attack on its oil facilities capped price gains.

    Brent crude futures for May rose by 32 cents, or 0.5 percent, to $68.56 a barrel, while US West Texas Intermediate (WTI) crude for April rose 19 cents, or 0.3 percent, to $65.24.

    “Fundamentals remain incredibly supportive, especially with Saudi Arabia in full control pursuing a tight oil policy,” Stephen Innes, chief global markets strategist at Axi said in a note.

    “Brent is currently holding up above $68, suggesting speculators are likely dipping their toes back in after yesterday’s chaos.”

    On Monday, Brent crude oil price rose above $70 a barrel after Yemen’s Houthi forces fired drones and missiles at the heart of the Saudi oil industry, including a Saudi Aramco facility at Ras Tanura vital to petroleum exports. – Reuters