Oil prices rise, Brent reaches $28

Oil prices rise, Brent reaches $28

Oil prices rose around 4% on Tuesday on hopes that the United States will soon reach a deal on a $2 trillion coronavirus aid package that could blunt the economic impact of the outbreak and in turn support oil demand.

Brent crude oil futures for May delivery rose by $1.05 a barrel, or 3.9%, to $28.08 a barrel by 0732 GMT while West Texas Intermediate (WTI) crude futures gained $1.20 cents, or 5.1%, to $24.56.

The U.S. Federal Reserve on Monday rolled out an extraordinary array of programs to backstop an economy reeling from restrictions on commerce that scientists say are needed to slow the coronavirus pandemic, Reuters reported.

While a $2 trillion coronavirus economic stimulus package remained stalled in the U.S. Senate on Monday as lawmakers haggled over its provisions, U.S. Treasury Secretary Steven Mnuchin voiced confidence that a deal would be reached soon.