Crude oil futures
extended gains on Monday following a surge at the end of last week on
short-covering and fuel demand triggered by freezing weather in parts of
the northern hemisphere.
Oil
prices soared 10 percent on Friday, one of the biggest daily rallies
ever, as bearish traders who had taken out record short positions
scrambled to close them, betting the market's long rout may finally be
over.
Brent had gained 39 cents or 1.21 percent to $32.57 a barrel by 0519 GMT, after touching $32.69 a barrel earlier in the day. It settled at $32.18 a barrel in the previous session.
U.S. crude rose 30 cents or 0.93 percent to $32.49 a barrel, compared with its session-high of $32.64 and previous settlement at $32.19.
"A change in investor sentiment was the key factor, with speculative short positions in WTI falling from historically high levels the previous week," ANZ said in a note on Monday, referring to U.S. West Texas Intermediate crude.
"Low crude oil prices continue to negatively impact high cost U.S. oil producers. Indeed, recent Baker Hughes data suggested U.S. oil explorers idled more oil rigs this week."
Morgan Stanley said that a weaker U.S. dollar rather than fundamental factors were supporting oil futures denominated in the greenback.
Brent had gained 39 cents or 1.21 percent to $32.57 a barrel by 0519 GMT, after touching $32.69 a barrel earlier in the day. It settled at $32.18 a barrel in the previous session.
U.S. crude rose 30 cents or 0.93 percent to $32.49 a barrel, compared with its session-high of $32.64 and previous settlement at $32.19.
"A change in investor sentiment was the key factor, with speculative short positions in WTI falling from historically high levels the previous week," ANZ said in a note on Monday, referring to U.S. West Texas Intermediate crude.
"Low crude oil prices continue to negatively impact high cost U.S. oil producers. Indeed, recent Baker Hughes data suggested U.S. oil explorers idled more oil rigs this week."
Morgan Stanley said that a weaker U.S. dollar rather than fundamental factors were supporting oil futures denominated in the greenback.
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