Strengthening demand from major global economies, especially the United States, could help push the price of oil up this week, analysts said.
Crude oil prices were boosted last week by positive economic signals from the United States. The US Department of Commerce said consumer spending rose 4.2% in March.
This spending was supported by a record 21.1% increase in personal income, reflecting billions of dollars in stimulus payments from the last two administrations.
In response, the price of crude oil continued to rise. The price of West Texas Intermediate, the US benchmark, ended last week up 2.2%. It added another 1.4 percent on Monday to settle at $ 64.49 a barrel.
Abhi Rajendran, research director at Energy Intelligence in New York, said that the reduction in US inventories of petroleum products, as well as the overall improvement in demand, were supporting the rise in oil prices. Last week, the energy department reported that demand for oil in the country had jumped 35.5% from levels a year ago.
“American optimism is strong and justified,” he said.
Elsewhere, Phil Flynn, senior energy analyst at the PRICE Futures Group in Chicago, said he was keeping an eye on progress in multilateral negotiations on a new Iran nuclear deal that would involve the United States.