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Brent crude was up 63 cents or 1% at $65.05 a barrel by 1150
GMT, and U.S. West Texas Intermediate (WTI) crude jumped 62
cents or 1% to $62.12 a barrel.
Both contracts finished February 18% higher.
"The three major supportive factors are the prevalent vaccine
rollouts, the optimism about economic growth and the view that
the oil balance will get tighter as a result of the first two
points," PVM Oil Associates analyst Tamas Varga said.
Support also came from a $1.9 trillion coronavirus relief
package passed by the U.S. House of Representatives on Saturday.
If approved by the Senate, the stimulus package would pay for
vaccines and medical supplies, and send a new round of emergency
financial aid to households and small businesses, which will
have a direct impact on energy demand.
The approval of Johnson & Johnson's COVID-19 shot also buoyed
the economic outlook.
Manufacturing data from around the world were mixed.
China's factory activity growth slipped to a nine-month low in
February but German activity hit its highest level in more than
three years and Euro zone factory activity raced along thanks to
soaring demand.
The Organization of the Petroleum Exporting Countries and its
allies, a group known as OPEC+, meet on Thursday and could
discuss allowing as much as 1.5 million barrels per day of crude
back into the market.
ING analysts said OPEC+ needs to be careful to avoid surprising
traders by releasing too much supply.
"There is a large amount of speculative money in oil at the
moment, so they will want to avoid any action that will see
(those investors) running for the exit," the analysts said.
(Reporting by Bozorgmehr Sharafedin in London; Additional
reporting by Jessica Jaganathan and Florence Tan in Singapore;
Editing by Jason Neely and Edmund Blair)
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