Oil rose towards $52 a barrel on Monday as U.S. President Donald Trump’s signing of a coronavirus aid package and the start of a European vaccination campaign outweighed concern about weak near-term demand.
Brent crude rose 43 cents, or 0.84%, to $51.72 a barrel, reversing an earlier decline. U.S. West Texas Intermediate (WTI) crude added 45 cents, or 0.93%, to $48.68.
“The signing of the U.S. stimulus bill, with the possibility of an increased size, should put a floor under oil prices in a shortened week,” said Jeffrey Halley, analyst at broker OANDA.
Oil remains vulnerable to any further setbacks in efforts to control the virus, said Stephen Innes, chief global market strategist at Axi, in a note.
Also coming into focus will be a Jan. 4 meeting of the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+. The group is slowly tapering record oil output cuts made this year to support the market.
OPEC+ is set to boost output by 500,000 barrels per day in January.