Oil jumps on vaccine optimism, U.S. stimulus | Reuters

Oil jumps on vaccine optimism, U.S. stimulus | Reuters

Oil prices rose on Monday, supported by optimism about COVID-19 vaccinations, a U.S. stimulus package and growing factory activity in Europe despite coronavirus restrictions.

Brent crude was up 63 cents or 1% at $65.05 a barrel by 1150 GMT, and U.S. West Texas Intermediate (WTI) crude jumped 62 cents or 1% to $62.12 a barrel.

Both contracts finished February 18% higher.

“The three major supportive factors are the prevalent vaccine rollouts, the optimism about economic growth and the view that the oil balance will get tighter as a result of the first two points,” PVM Oil Associates analyst Tamas Varga said.

Support also came from a $1.9 trillion coronavirus relief package passed by the U.S. House of Representatives on Saturday.