WTI futures reversed early losses to trade around $48.3 a barrel on Monday as investors try to shrug off concerns over a new coronavirus strain and focus on prospects of a brighter economic outlook for 2021 as coronavirus vaccination started in the European Union and as President Trump finally signed a coronavirus-aid bill worth around $900 billion.
There were uncertainties last week whether Trump would sign the new stimulus package after demanding a higher cash payment.
On the other hand, a new strain continues to worry investors and threaten the recovery in global fuel demand. The new strain was already reported in many countries outside the UK including France, Canada and Japan and Beijing entered into an emergency mode over the weekend.
At the same time, oversupply concerns grow as OPEC+ will gradually reduce output cuts from January.