Oil climbs over 1% as demand hopes boost sentiment

Oil climbed over 1% on Monday as China’s economic figures and speedy U.S. vaccination rollouts pointed to a strong demand recovery in the world’s two largest economies.

However, investors remain wary over worsening COVID-19 infections in India, along with an increase in OPEC+ oil supply.

Brent crude increased by 1.2%, or 80 cents, at $67.56 per barrel. U.S. West Texas Intermediate was up 1.4%, or 91 cents, at $64.49 per barrel.

China and the United States are expected to drive demand recovery from the pandemic. On Monday, India posted over 300,000 fresh COVID-19 cases for a 12th consecutive day. 

Brent rallied nearly 30% this year, recovering from last year’s historic lows thanks to OPEC supply cuts.

Still, OPEC+ decided to stick to a plan to increase supply from May 1. Production also rose in April, led by a supply increase from Iran.