Oil prices rose last Monday, extending the previous week’s 5% gains as traders anticipated coronavirus vaccine trials would spur a recovery in demand.
Sentiment was also bolstered by expectations that the Organization of the Petroleum Exporting Countries, Russia and other producers, a group known as OPEC+, would extend a deal to restrain output.
Brent crude rose 58 cents to 45.54 dollars a barrel while U.S. West Texas Intermediate crude gained 35 cents to 42.77dollars a barrel.
Outlook for demand has improved with news indicating progress towards developing COVID-19 vaccines.
A US official said the first inoculations in the United States could start a day or two after regulatory approval was secured.
Analysts said the news was detaching sentiment from “gloomy fundamentals,” adding, “Investors are ignoring near-term headwinds, chief among which are surging global COVID infections, and instead looking ahead to next summer.”