Oil Gains Despite Distribution of Vaccine And New Strains of Coronavirus Faltering

Oil prices rose Monday, February 1, after a weak start, to consolidate the gains it made over the past three months, despite the faltering operations of the distribution of anti-Coronavirus vaccines, new infections and the discovery of new strains casting shadows on demand expectations.

Brent crude futures rose 36 cents, or 0.7%, to $ 55.40 a barrel, while U.S. West Texas Intermediate crude gained 24 cents, or 0.5%, to $ 52.44. The two benchmarks rose nearly 8% in January.

Oil prices have received support from ongoing immunization programs in the countries most affected by the pandemic and production cuts by large producers such as Saudi Arabia. But the euphoria about a possible end to the pandemic has been undermined by the slow pace of vaccinations and the increase in new strains of the Coronavirus.