Oil rose more than 1% on Monday as Chinese economic figures and U.S. vaccination rate 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 jumped 80 cents, or 1.2%, to settle at $67.56 per barrel.
U.S. West Texas Intermediate settled 91 cents, or 1.43%, higher at $64.49 per 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.
Meanwhile, Chinese crude imports averaged a seasonal record in February and March from increased car sales, a recovery in local travel and a strong industrial backdrop, BofA Global Research said.
Still, parts of the world such as India are seeing rising coronavirus cases. India on Monday reported more than 300,000 new coronavirus cases for a 12th straight day. The new wave of the virus has already led to a drop in fuel sales in April.
Reference: CNBC
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