Oil advances above $66 as week opens with the recovery in focus
Oil topped $66 a barrel as traders assessed prospects for further recovery from the pandemic and the outlook for rising global demand as the OPEC+ alliance presses on with output curbs to drain inventories.
West Texas Intermediate in New York gained as much as 0.8% after easing on Friday to cap a narrow weekly loss. The weekly U.S. Covid-19 death toll sank to a four-month low and new infections dropped, boosting the outlook for energy consumption in the world’s largest economy. Still, there are pockets of concern in the Asia-Pacific, including a fresh outbreak in Hong Kong.
Crude has rallied strongly in the opening months of 2021, supported by the vaccine-aided recovery from the pandemic and the decision by the Organization of Petroleum Exporting Countries and its allies to keep a tight rein on supplies. That combination — plus an uptick in attacks on Saudi oil infrastructure by Houthi rebels — helped London’s Brent crude to top $71 a barrel last week.
