Prices of Brent crude oil and WTI crude oil rose to $80.95 a barrel and $76.20 a barrel on Monday morning.
Crude oil prices around the world rose on Monday to extend gains of OPEC+ deepening supply cuts to shore up prices that have fallen.
Brent crude futures rose 34 cents to $80.95 a barrel by 0915 GMT. U.S. West Texas Intermediate crude was up 31 cents at $76.20.
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Oil prices have dropped by almost 20% since late September while prompt inter-month spreads for Brent and WTI slipped into contango last week.
A Contango market is a futures market occurrence marked by futures contract prices rising above spot prices.
Here traders and investors anticipate an increase in prices in the coming months. The opposite of contango is backwardation when futures prices are lower than spot prices.
“In light of last week’s obliteration of oil bulls, some kind of response was forthcoming from the (OPEC) producer group,” said Tamas Varga of oil broker PVM.
Investors Are Monitoring Russian Crude Oil Trade
“If additional cuts are agreed, a short-term price boost is expected, but its longer-term price impact seems dubious as enforcement and adherence will be the salient issue.”
Investors are also keeping an eye on the Russian crude oil trade after Washington imposed sanctions on three ships that have sent Sokol crude to India.
On Friday Moscow lifted a ban on gasoline exports which could add to global supplies of the motor fuel.
That came after Russia scrapped most restrictions on exports of diesel last month.
U.S. energy companies last week added oil and gas rigs for the first time in three weeks, energy services business Baker Hughes said on Friday.
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The oil and gas rig count serves as an early indicator of future output.
In the Middle East, U.S. and Israeli officials said a deal to free some of the hostages held in the besieged Gaza enclave was edging closer despite fierce fighting.