Oil futures inched higher Monday, buoyed by prospects for the passage of the U.S. stimulus bill, ahead of a decision this week by the Organization of the Petroleum Exporting Countries and its allies thats expected to see a loosening of production curbs.

The U.S. House early Saturday passed the Biden administrations 1.9 trillion package of COVID19 relief spending. It now moves to the Senate, where it may be pared as Democrats work to push it through a chamber thats divided 5050, with Vice President Kamala Harris serving as the tiebreaking vote.

The fact that the U.S. House finally passed the bill is a crucial step and now markets finally rejoice on solid ground, said Louise Dickson, oil markets analyst at Rystad Energy, in Monday commentary. Oil prices are naturally moving as spending is expected to rise in industrial and social activity, naturally creating more demand for oil,

West Texas Intermediate crude for April delivery rose 35 cents, or 0.6, to 61.85 a barrel on the New York Mercantile Exchange. May Brent crude, the global benchmark, added 48 cents, or 0.8, to 64.90 a barrel on ICE Futures Europe.

Oil has rallied so far this year, boosted by expectations for the rollout of COVID19 vaccines and fiscal stimulus to lead to a strong pickup in demand, while efforts by OPEC and its allies, a group known as OPEC, to keep a lid on production have helped keep the market in balance, analysts said, a move enhanced by Saudi Arabias decision to cut an additional 1 million…