Oil prices edged up on Monday as supply jitters and U.S. stimulus plans offset fresh concerns about the hit to global fuel demand from renewed lockdowns to curb spikes in COVID-19 infections, Reuters reports.
Brent crude futures for March rose 34 cents, or 0.6%, to $55.75 a barrel by 1008 GMT. U.S. West Texas Intermediate crude for March was up 37 cents, or 0.7%, at $52.64.
“Even though the pandemic is not yet slowing down, oil prices have good reasons to start the week with gains, as traders capitalise on a bullish cocktail of news on Monday morning,” said Bjornar Tonhaugen, Rystad Energy’s head of oil markets.
Indonesia on Sunday said its coast guard had seized the Iranian-flagged MT Horse and the Panamanian-flagged MT Freya vessels over suspected illegal fuel transfers, raising the prospect of more tensions in the oil-exporting Gulf.
“A development that always benefits prices is the market turbulence that conflicts create,” Tonhaugen added.
Libyan oil guards halted exports from several main ports in a pay dispute on Monday, while output from Kazakhstan’s giant Tengiz field was disrupted by a power outage on Jan. 17.
