2020.03.2410:37:00UTC+00Oil Prices Soar As Dollar Extends Slide On Fed Stimulus

Oil prices soared on Tuesday and the dollar fell for a second day running after the U.S. Federal Reserve unveiled fresh measures to supply precious liquidity into funding markets.

Meanwhile, if media reports are to be believed, U.S. Senate leaders and the Trump administration appear closer to reaching bipartisan agreement on a stimulus bill that would inject nearly $2 trillion into the economy.

Benchmark Brent crude surged 5.9 percent to $28.62 a barrel, while West Texas Intermediate (WTI) crude futures were up as much as 7.4 percent at $25.09.

Global risk sentiment improved after the Fed said it would go beyond the $700 billion in asset purchases announced last week.

The Fed proposed to buy a wide range of investments, including corporate bonds for the first time, to improve trading in markets that help home buyers finance the purchase of houses, state and local governments borrow and businesses get enough short-term cash to make payroll.

Investors also monitored news headlines on the coronavirus, which infected more than 350,000 people worldwide so far.

Britain went into lockdown late Monday while Italy reported a smaller increase in coronavirus cases for the second consecutive day.

Spain imposed an Italy-style lockdown in a bid to contain the spread of the virus. There is lockdown in most parts of India to deal with the novel coronavirus threat.