SULAIMANI (ESTA) — Oil prices rose on Monday after a weak start, holding on to the past three months of gains, although patchy coronavirus vaccine rollouts, new infections and the discovery of new variants are keeping a lid on prices.
Brent crude futures were up 32 cents at $55.36 a barrel by 0648 GMT, while U.S. West Texas Intermediate (WTI) gained 20 cents to $52.40.
Oil prices have been boosted by vaccination programmes getting underway in hard-hit countries and output cuts by major producers like Saudi Arabia, according to Reuters.
But euphoria over a possible end to the pandemic has been undermined by the slow pace of vaccinations and the rise of the new variants of COVID-19.
Still, with more vaccines proving successful in trials and infections falling in some areas, demand for oil and fuels is likely to pick up as more of the world’s population gets inoculated against COVID-19.
“Demand will recover across the board, led by Asia-Pacific and North America,” FitchSolutions said in a research note, Reuters reported.
“Europe and Latin America will lag, largely a reflection of softer economic recovery in key markets in these regions,” it said.
