Oil prices rose on Monday, pushing Brent back above $50 a barrel, buoyed by hopes that a rollout of coronavirus vaccines will lift global fuel demand while a tanker explosion in Saudi Arabia jangled nerves in the market.
Brent crude futures for February rose 54 cents, or 1.1 per cent, to $50.51 a barrel by 09.50 GMT, while US West Texas Intermediate crude futures for January were up 46 cents, or 1 per cent, at $47.03 a barrel.
Prices also extended gains amid supply jitters after a shipping firm said an oil tanker was hit by an external source while discharging at Jeddah port in Saudi Arabia.
“Brent crude is supported by both financial and physical flows. The dollar is declining, the Brent crude curve is in backwardation and vaccines are being rolled out,” said SEB chief commodity analyst Bjarne Schieldrop.
