Brent approaches $60/bbl as supply cuts, stimulus hopes lift prices

* Weak dollar also supports prices of commodities
* 6-month Brent spread widest in a year
* U.S. oil rig count highest since May last week - Baker
Hughes

By Florence Tan
SINGAPORE, Feb 8 (Reuters) - Oil prices rose on Monday, with
Brent futures nearing $60 a barrel, boosted by supply cuts among
key producers and hopes for further U.S. economic stimulus
measures to boost demand.
Brent crude LCOc1 for April touched a high of $59.95 a
barrel and was at $59.85 by 0041 GMT, up 51 cents, or 0.9%.
Front-month prices last hit $60 on Feb. 20, 2020.
U.S. West Texas Intermediate crude futures CLc1 advanced
54 cents, or 1%, to $57.39 a barrel, the highest since January
last year.
"A weak U.S. jobs report boosted hopes of further stimulus
measures," ANZ analysts said, adding that energy products and
industrial metals benefited from an increased appetite for risk
among investors.
A weaker dollar against most currencies on Monday also
supported commodities, with dollar-denominated commodities
becoming more affordable to holders of other currencies.
Meanwhile Saudi Arabia's pledge of extra supply cuts in
February and March on the back of reductions by other members of
the Organization of the Petroleum Exporting Countries and its
allies, including Russia, is helping to balance global markets.
In a sign that prompt supplies are tightening, the six-month
Brent spread LCOc1-LCOc7 settled at $2.33 on Friday after
hitting a high of $2.44, its widest in a year.
Still, stronger crude prices are encouraging U.S. producers
to increase output, while anti-coronavirus lockdowns across
parts of Europe and Asia are keeping a lid on fuel demand,
analysts said.
The U.S. oil rig count, an early indicator of future output,
rose to its highest since May last week, according to energy
services firm Baker Hughes Co. RIG/U