Oil rises on stimulus support despite large supplies

Oil prices rose on Monday with Brent futures on course for a fifth monthly gain as global stimulus measures supported prices despite the weak demand in a well-supplied market.

Brent crude futures for November gained 0.6%, or 27 cents, at $46.08 per barrel. U.S. West Texas Intermediate crude climbed 0.3%, or 14 cents, at $43.11 per barrel.

Brent is on course for a fifth monthly gain as it peaked at $46.23 per barrel in early August, the highest level since March. WTI is set to gain on a fourth consecutive month, hitting $43.78 per barrel on Aug. 26 when Hurricane Laura struck.

Oil markets shrugged off Laura’s impact as oil companies worked on reopening operations in the U.S. Gulf Coast. A weak greenback also supported oil prices despite a struggling fuel demand.

Chinese crude imports in September are expected to drop for the first time in five months as record volumes of crude are stored in and outside of the country.

Higher oil and gas prices are encouraging producers to continue drilling as U.S. oil and gas rigs count climbed by three to 254 in August.