The West Texas Intermediate (WTI) for January delivery rose 42 cents to settle at 46.99 U.S. dollars a barrel on the New York Mercantile Exchange, its highest level in nine months. Brent crude for February delivery increased 32 cents to close at 50.29 dollars a barrel on the London ICE Futures Exchange.
"Prices are finding tailwind from the general market optimism that is being fuelled by the start of corona vaccinations" and hopes on an economic stimulus package in the United States, Carsten Fritsch, analyst at Commerzbank Research, said in a note Monday.
"Speculative financial investors are continuing to bet on rising oil prices, fanning the flames of the rally," as net long positions in Brent climbed considerably in the last reporting week, he added.
Meanwhile, analysts expect oil prices to come under pressure in the first half of 2021, as risks remain high on both the demand and supply sides.
For the week ending Friday, WTI rose about 0.7 percent, and Brent was up 1.5 percent, notching their sixth consecutive weekly gains.
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