Oil rebounds as U.S. House passes massive coronavirus bill

Oil prices recovered over $1 on Monday after the U.S. House of Representatives passed a massive economic package, but a decline in Chinese factory activity growth in February capped gains.

Brent crude futures for May contract were up 1.7%, or $1.07, at $65.49 per barrel. The April contract expired on Friday. 

U.S. West Texas Intermediate crude futures gained 1.6%, or $1.01, at $62.51 per barrel. 

Front-month prices for both benchmarks hit 13-month highs last week, falling back on Friday as financial markets followed a bond rout due to inflation concerns.

The U.S. House passed a $1.9 trillion coronavirus relief aid on Saturday, boosting investors’ appetite for risk assets.

Chinese crude imports are expected to decline in the second quarter as the rally in oil prices cooled demand.

OPEC and its allies are set to meet Thursday to assess oil supply and whether a 1.5 million bpd of crude should be brought back to the market.