Amid the Coronavirus pandemic, extending last week’s gains as traders eyed a recovery in demand due to successful coronavirus vaccine trials Oil prices rose more than 1% on Monday.
It was also felt that the Organization of Petroleum Exporting Countries (OPEC), Russia and a group of other producers, known as OPEC +, could extend the agreement on output control.
Brent crude rose 94 cents to $45.90 a barrel by 0913 GMT while U.S. West Texas Intermediate crude gained 76 cents to $43.18 a barrel. Both benchmarks jumped 5% last week.
The contango structure in the market, where the prices of front-month delivery contracts are lower than those for delivery six months later, narrowed to 32 U.S. cents, its smallest since mid June, indicating that concerns about a glut were receding.