Oil rose more than 1% on Monday as Chinese economic figures and U.S. vaccination rates pointed to a strong rebound in demand in the world’s two largest economies.
Investors remain wary, however, over record-breaking infection rates in India, the third-largest fuel importer worldwide, along with higher OPEC+ oil supply. Brent crude rose 80 cents, or 1.2%, to settle at $67.56 a barrel. U.S. West Texas Intermediate rose 91 cents, or 1.4%, to settle at $64.49 a barrel.
The United States and China, the world’s top two oil consumers, are expected to drive a recovery in demand from the coronavirus pandemic.
“Even as COVID-19 cases hit record levels this week, oil prices have moved higher on growing vaccination numbers in developed markets,” a BofA Global Research report said. “Recent data points to the high effectiveness of vaccines at preventing infections and fatalities.”
About a third of U.S. residents have been fully vaccinated, Reuters’ coronavirus tracker showed.