Oil hits 13-month high amid hopes for global economic recovery

Crude prices extended gains to one-year highs on Monday, fueled by expectations of a strong rebound in demand. Investors hope that Covid-19 vaccine rollouts and government stimulus packages will power a rapid rebound this year.

International benchmark Brent was up more than one percent to above $63 a barrel, while US West Texas Intermediate (WTI) topped $60 a barrel for the first time since January 2020.

“Hopes of increased demand in the coming months along with controlled supply has been positive for an oil price, which has risen by 22 percent in the year to date,” Richard Hunter, head of markets at Interactive Investor, said, as quoted by Business Insider.

European stock markets were also trading up on Monday, following gains in Asia, with the German stock market hitting a record high and other major indexes gaining between 0.8 percent and 1.5 percent. Stock markets in China and the US are closed for holidays.

Europe’s Stoxx 600 index was up over one percent, while the UK’s FTSE 100 grew more than two percent. Futures for the US’ S&P 500 were up 0.4 percent, although trading will be closed on Monday for President's Day.

“As the virus count falls in major countries and the vaccine roll-out proceeds with fits and starts, the mood in markets is improving,” said Marshall Gittler, head of investment research at trading platform BDSwiss. “It helps too that financial conditions are extremely loose, meaning there's a lot of money floating around looking for a home. As a result, stock markets are moving further into record territory,” he added.

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