Oil Prices Get Boost from Stronger US Equities

Oil edged up with support from U.S. equities, but pandemic-driven demand concerns capped the price rebound.

Crude futures of New York managed to close 0.5% higher on Monday, boosted by a stronger equity market. Still, the coronavirus is raging about the globe -- infections flared by a record of Hong Kong, Los Angeles is on the brink of another stay-at-home order and the new rate of people testing positive for the first time in Florida climbed to nearly 15%.

Crude has been stuck in a holding pattern this month as a resurgence of coronavirus cases of various parts of the world proves demand weakness is here to stay for the near-term. Global virus cases are approaching nearly 15 million. The signal that U.S. companies may start ramp up shale production as the OPEC+ alliance prepares to unleash crude back onto the market next month is also adding to the negative sentiment.