Reuters reports that Goldman Sachs said that the new U.S. administration's plans for large fiscal spending and little urgency to lift sanctions on Iran are constructive for oil and gas prices.

"On our estimates, a $2 trillion stimulus over 2021-22 would... boost U.S. demand by about 200,000 barrels per day," the bank said in a note.

U.S. President Joe Biden's proposed $1.9 trillion stimulus package aims to jump-start the economy and accelerate vaccines distribution to control COVID-19, which has hammered global oil demand.

The bank also said that since the Biden administration is looking to strengthen and lengthen nuclear constraints on Iran, the country's oil exports would remain moderate this year and at 0.5 million barrels per day in the second half of 2021.

"Delays in a full return of Iran production would reinforce our bullish oil outlook since we already forecast a tight 2022 crude market with low OPEC spare capacity," Goldman said.