Oil prices rise on expected economic recovery, likely drawdown in oil stocks

* U.S. 'alarmed' by frequency of attacks on Saudi
* Yellen says Biden COVID bill to fuel "very strong" U.S.
recovery
* Coming up: API oil inventory data at 2130 GMT

By Jessica Jaganathan
SINGAPORE, March 9 (Reuters) - Oil prices rose on Tuesday on
expectations of a recovery in the global economy after U.S.
Senate approval of a $1.9 trillion stimulus bill and on a likely
drawdown in crude oil inventory in the United States.
But a stronger dollar and receding fears of oil supply
disruption from Saudi Arabia after an attack on its oil
facilities capped price gains.
Brent crude futures LCOc1 for May rose by 32 cents, or
0.5%, to $68.56 a barrel by 0125 GMT, while U.S. West Texas
Intermediate (WTI) crude CLc1 for April rose 19 cents, or
0.3%, to $65.24.
"Fundamentals remain incredibly supportive, especially with
Saudi Arabia in full control pursuing a tight oil policy,"
Stephen Innes, chief global markets strategist at Axi said in a
note.
"Brent is currently holding up above $68, suggesting
speculators are likely dipping their toes back in after
yesterday's chaos."
On Monday, Brent crude oil price rose above $70 a barrel
after Yemen's Houthi forces fired drones and missiles at the
heart of the Saudi oil industry, including a Saudi Aramco
facility at Ras Tanura vital to petroleum exports. Riyadh said there were no casualties or loss of property and
prices ended the day lower.
Still, the United States expressed alarm at "genuine
security threats" to Saudi Arabia from Yemen's Iran-aligned
Houthis and elsewhere in the region, and said it would look at
improving support for Saudi defences. The attacks came after the Organization of the Petroleum
Exporting Countries, Russia and their oil producing allies,
known as OPEC+, agreed last week agree on broadly sticking with
output cuts despite rising crude prices.
Investor focus, meanwhile, remains on the prospects for a
global economic recovery.
U.S. Treasury Secretary Janet Yellen said on Monday that
President Joe Biden's $1.9 trillion coronavirus aid package will
provide enough resources to fuel a "very strong" U.S. economic
recovery. U.S. crude oil and refined product stockpiles likely fell
last week, with distillate inventories seen drawing down for
fifth straight week, a preliminary Reuters poll showed on
Monday.