On Monday, oil prices jumped to their highest in nearly 13 months, supported by a successful vaccine distribution that promises to revive demand for crude as producers continue to curb supplies.
Brent crude futures, the world benchmark, ended the trading session up 87 cents, or 1.39 percent, to settle at $ 63.30 a barrel, after recording earlier in the session $ 63.76, the highest level since January 22 last year.
US West Texas Intermediate crude futures rose 65 cents, or 1.1 percent, to $ 60.12 a barrel, after touching $ 60.90, the highest level since January 8 of last year.
Oil prices recorded gains of about 5 percent last week.
Oil prices rose over the past few weeks as well, amid a lack of supplies, largely due to production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and allied producers in the “OPEC +” group.
“Moreover, the strength of global stock markets has boosted investor appetite for risk,” said Satoru Yoshida, commodities analyst at Rakuten Securities.
Yoshida added that crude prices may go to $ 70 a barrel in light of low-cost money supply with financial easing around the world, rapid distribution of vaccines and scarce supplies from OPEC + and shale oil producers in the United States.