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Oil Futures Settle Notably Higher

Crude oil prices rose fairly sharply on Monday as traders continued to bet energy demand will increase despite reports showing a surge in new coronavirus infections in several U.S. states and in quite a few countries across the globe.

Expectations that OPEC and allies will comply with agreed output reductions and last week's data from Baker Hughes that showed another drop in U.S. oil rig count supported oil's uptick.

West Texas Crude oil futures contracts for July expired at $40.46 barrel, gaining $0.71 or 1.8% for the session.

The new front-month WTI Contract for August settled higher by $0.90 or 2.3% at $40.73 a barrel.

Brent crude futures moved up $0.89 or about 2.1% at $43.08 a barrel.

Oil prices edged lower earlier in the session as fears over rising coronavirus cases across the world offset signs of tighter supplies from major crude oil producers.

The World Health Organization (WHO) reported a record increase in global coronavirus cases on Sunday, with the biggest increase from North and South America.

The WHO has warned that the pandemic is "accelerating and the world is in a new and dangerous phase."

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