US oil steadied at above $37 a barrel today, pausing from last session's 10 per cent rally, as investors took profits and sought further directions ahead of the signing of a US stimulus package this week.
President Barack Obama on Saturday hailed congressional approval of a $787 billion economic stimulus bill as a major milestone in the country's economic recovery and the White House said he would sign the legislation tomorrow.
US light crude for March delivery crept up 10 cents to $37.61 a barrel by 1.11am, adding to Friday's gains of $3.53.
London Brent crude fell 30 cents to $44.51, maintaining a rare premium to US oil due to high stock levels at the main US storage hub in Cushing, Oklahoma.
“A lot of good news was already priced in on Friday so the market is probably taking profits amid a shortened trading week,” said Mark Pervan, senior commodities analyst at Australia & New Zealand Bank.
“Also, there are quite a few key economic data coming out of the US this week that are likely to disappoint, so the market is probably positioning ahead.”
US economic data due to be released tomorrow include manufacturing production in New York State and US home builder sentiment for February.
Reuters