Oil prices soared on Monday after the US President signed a $ 2.3 trillion coronavirus aid and spending package, but concerns about short-term demand in the market rose.
Brent crude futures added 12 cents, or 0.2%, at $51.41 a barrel at 0803 GMT, having fallen as much as 1.5% to $50.53 a barrel earlier in the session.
West Texas Intermediate (WTI) crude futures rose 18 cents, or 0.4%, to $48.41 a barrel..
The signing of the US incentive bill will set the stage for oil prices, and due to the trade volume shrinking during the holiday week, oil is likely to remain under the radar in the coming days.
Global stocks soared on Monday following the US president’s acclaimed move.
However, highly contagious variations of the coronavirus, first seen in the UK and now detected in many other countries, have led to the re-application of mobility restrictions, raising concerns about the recovery in demand.
As the world urgently launched mass vaccination programs, the short-term fate of the oil market focused on the effectiveness of vaccines against the new virus variant.
Any complications on the outbreak front, whether related to vaccine logistics or lockdown, January oil demand is less robust. More sales may be encountered, especially if the effects of the virus worsen than expected after the holiday.