Oil rose to hit $52 a barrel on Monday as US President Donald Trump's signing of a coronavirus aid package and the start of a European vaccination campaign outweighed concern about weak near-term demand.
For more coronavirus news, visit our dedicated page.
After Trump backed down from a threat to block the package, Democrats on Monday will try to push through expanded $2,000 relief payments.
Europe, meanwhile, launched a mass vaccination drive on Sunday.
For all the latest headlines follow our Google News channel online or via the app
Brent crude was up 45 cents, or 0.9 percent, at $51.74 a barrel at 1200 GMT, after trading as high as $52.02 and reversing an earlier decline. US West Texas Intermediate (WTI) crude added 44 cents, or 0.9 percent, to $48.67.
Read more: Oil demand to return to pre-coronavirus levels by end of 2021-early 2022: IHS Markit
"The signing of the US stimulus bill, with the possibility of an increased size, should put a floor under oil prices in a shortened week," said Jeffrey Halley, analyst at broker OANDA.
Oil has recovered from historic lows hit this year as the emerging pandemic hammered demand. Brent reached $52.48 on December 18, its highest since March.
But, the emergence of a new variant of the virus has led to movement restrictions being reimposed, hitting near-term demand and weighing on prices.
Oil remains vulnerable to any further setbacks in efforts to control the virus, said Stephen Innes, chief global market strategist at Axi, in a note.
Also coming into focus will be a January 4 meeting of the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+.
The group is tapering record oil output cuts made this year to support the market.
OPEC+ is set to boost output by 500,000 barrels per day in January. Russian Deputy Prime Minister Alexander Novak said on Monday the deal could be adjusted if the market recovers more quickly than expected.
Coronavirus: Saudi Arabia detects 119 COVID-19 infectionsSaudi Arabia on Monday detected 119 new coronavirus cases, the Ministry of Health said, bringing the total number of cases in the country to 362, ... Coronavirus
Coronavirus: UAE detects 1,027 new COVID-19 cases, 1,253 recoveriesThe United Arab Emirates detected 1,027 new coronavirus cases, which raised the total number of recorded cases in the country to 202,863, the Ministry ... Coronavirus
Logistics hurdle delays delivery of new batch of Pfizer vaccine to Spain by one dayPfizer has postponed the delivery of a new batch of the coronavirus vaccine to Spain by one day to Tuesday due to a logistics hurdle, Health Minister ... Coronavirus
Coronavirus: More than 270,000 expatriate workers left Oman this yearOman’s expatriate worker population fell by more than 270,000, or nearly 16 percent, from the end of 2019 to November 2020, data from the National ... Economy
Coronavirus: Sydney bans New Year crowds as Australian virus cluster growsPlans to let thousands of frontline workers ring in the new year around Sydney harbor were ditched Monday as authorities work to suppress a growing ... Coronavirus
Oil demand to return to pre-coronavirus levels by end of 2021-early 2022: IHS MarkitOil demand is not likely to return to levels seen in late 2019 before the coronavirus pandemic until the end of next year or even later, Daniel Yergin ... Energy
Vaccine approval in UK may lead to lifting of COVID-19 rules: Cabinet ministerBritish regulatory approval of a COVID-19 vaccine candidate developed by Oxford University and AstraZeneca could accelerate the lifting of COVID-19 ... Coronavirus