Oil prices skyrocketed on Monday, recovering from a seven-day losing streak on the back of a weaker dollar, despite concerns about pandemic effects on demand.
Brent oil rose $2.17, or 3.2%, to $67.35 a barrel at 10:01 AM WAT after hitting its low since May 21 at $64.60.
US West Texas Intermediate (WTI) crude for October delivery rose $2.11 or 3.3% to $64.25. The price had reached $61.74 in early trading in Asia, also its lowest level since May 21.
Both benchmarks marked their biggest week of losses in more than nine months last week, with Brent falling about 8% and WTI about 9%.
Many countries are responding to the rising number of coronavirus infections by introducing new travel restrictions. China, the world’s largest oil importer, has imposed new restrictions affecting shipping and global supply chains. The United States and China have also imposed restrictions on flying capacity.
But a decline in the US dollar provided some support, making crude cheaper for holders of other currencies. The dollar index, which measures the currency against six competitors, traded at 93.349, down slightly from its nine-month high on Friday at 93.734.