Crude oil futures settled sharply higher on Monday, snapping a seven-day losing streak and posting their biggest single-session gain in percentage terms in about five months.
Optimism about growth, and a weak dollar contributed to oil’s sharp uptick.
West Texas Intermediate Crude oil futures for October ended down by $3.50 or about 5.6% at $65.64 a barrel, snapping their longest losing streak in nearly two years. WTI crude futures shed about 9% last week.
Brent crude futures gained $5.37 or about 5.5% to $68.75 a barrel.
Oil prices tumbled last week amid rising worries about outlook for energy demand due to a surge in coronavirus cases and possible fresh lockdown measures in several countries across the world.
Global equities rose today despite persistent worries about the COVID-19 Delta variant.
Meanwhile, investors await more clarity from the Fed on the tapering timeline as the Delta variant of the coronavirus continues to spread across the globe, forcing countries to impose nationwide as well as local lockdown.
Iran had last week tightened curbs to contain the spread of the virus.
New Zealand extended a national COVID-19 lockdown on August 23, while Australia imposed strict lockdown in two of its biggest cities Sydney and Melbourne.
China has taken a zero-tolerance approach towards containing new infections.