Oil prices gained on Monday as market participants continued to weigh the impact of the COVID-19 pandemic.
The West Texas Intermediate (WTI) for August delivery advanced 1.21 U.S. dollars to settle at 39.70 dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery climbed 69 cents to close at 41.71 dollars a barrel on the London ICE Futures Exchange.
The moves followed a downbeat week for the oil market that saw the WTI post a 3.4-percent decline and Brent drop 2.8 percent.
"Oil prices are unable to ignore the increased risk aversion amid the coronavirus fears," Eugen Weinberg, energy analyst at Commerzbank Research, said in a note on Monday, adding the market found some support from the fact that U.S. oil producers were failing to respond to the rising prices in recent months.
"No massive investments are likely to be made in the foreseeable future given the gigantic mountains of debt and the considerable financial risks," Weinberg noted.
Chesapeake Energy, a major U.S. shale oil company, filed for bankruptcy on Sunday.
Data from oilfield services company Baker Hughes on Friday showed that the number of active U.S. rigs drilling for oil fell by one to 188 in the latest week.
Editor:Cherie
