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Brent crude futures for March rose 7 cents, or 0.1%, to $55.48 a
barrel by 1210 GMT. U.S. West Texas Intermediate crude for March
was up 5 cents, or 0.1%, at $52.32.
"Sentiment was buoyed by expectations for a blockbuster
coronavirus relief package ... (but) the tug of war between
stimulus optimism and virus woes is set to continue," said
Stephen Brennock of broker PVM.
U.S. lawmakers are set to lock horns over the size of a $1.9
trillion pandemic relief package proposed by new President Joe
Biden, financial stimulus that would support the economy and
fuel demand.
European nations, major consumers, have imposed tough
restrictions to halt the spread of the virus, while China
reported a rise in new COVID-19 cases, casting a pall over
demand prospects in the world's largest energy consumer.
Barclays raised its 2021 oil price forecasts, but said rising
cases in China could contribute to near-term pullbacks.
"Even though the pandemic is not yet slowing down, oil prices
have good reasons to start the week with gains," said Bjornar
Tonhaugen from Rystad Energy.
Supply concerns have offered some support. Indonesia said its
coast guard seized an Iranian-flagged tanker over suspected
illegal fuel transfers, raising the prospect of more tensions in
the oil-exporting Gulf.
"A development that always benefits prices is the market
turbulence that conflicts create," Tonhaugen added.
Libyan oil guards halted exports from several main ports in a
pay dispute on Monday.
Output from Kazakhstan's giant Tengiz field was disrupted by a
power outage on Jan. 17.
(Editing by David Goodman and Edmund Blair)
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