Oil prices edged slightly higher in trading on Monday as optimism about a rebound in the U.S. economy was tempered by rising COVID-19 cases in other parts of the world.
Brent crude oil was up 29 cents, or 0.5%, at $63.24 a barrel. West Texas Intermediate (WTI) U.S. crude oil rose 17 cents, or 0.3%, to $59.49. The prices have remained rangebound over the past three weeks, with Brent crude oil between $60 and $65 a barrel and WTI at $57 to $62.
India now accounts for one in every six daily COVID-19 infections worldwide, with cases also rising in other parts of Asia. Consequently, Asian oil demand remained weak and some buyers have asked for lower volumes in May, partly because of refinery maintenance and higher prices.
The United States, meanwhile, has fully vaccinated more than 70 million people but U.S. gasoline demand has not picked up as much as expected in recent weeks.
The U.S. economy is now at an "inflection point" amid expectations that growth and hiring will accelerate in the months ahead, but it faces the risk of reopening too quickly and sparking a resurgence in coronavirus cases, U.S. Federal Reserve Chairman Jerome Powell said in a media interview broadcast over the weekend.
