Oil prices rise as traders anticipate vaccine trials may spur demand

LONDON (Reuters) – Oil prices rose on Monday, extending last week’s gains as traders anticipated coronavirus vaccine trials would spur a recovery in demand.

Sentiment was also bolstered by expectations that the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a group known as OPEC+, would extend a deal to restrain output.

Brent crude rose 58 cents to $45.54 a barrel by 1435 GMT while U.S. West Texas Intermediate crude gained 35 cents to $42.77 a barrel. Both benchmarks jumped 5% last week.

The contango structure in the market, whereby the prices of front-month delivery contracts are lower than those for delivery six months later, narrowed to as little as 31 U.S. cents, its smallest since mid June, reflecting traders’ views a sustained glut is receding.