Oil prices rise on news of positive signs for global economic growth

Oil prices rose on Monday as positive signs for global economic growth supported the outlook for energy demand and the United States said it was weighing options to address high prices.

Brent crude was up 71 cents, or 0.83%, at $83.44 a barrel by 2:28 p.m. (1828 GMT), having lost nearly 2% last week. U.S. oil gained 68, or 0.84%, to $81.95 after a 3% fall last week. Both contracts rose by more than $1 a barrel in early trade.

U.S. President Joe Biden on Saturday welcomed congressional passage of a long-delayed $1 trillion infrastructure bill, which could boost economic growth and demand for fuel.

“Global demand is exceeding supply right now – the Build Back Better plan could exacerbate that situation – and there’s little the Biden Administration can do to reply to meet that demand,” said Phil Flynn, senior analyst at Price Futures Group in New York.

Further price support has also come from a decision last week by the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group collectively known as OPEC+, not to speed up their planned production increases.