Oil prices rose on Monday, extending gains for the second straight day, and jumped to a 13-month high, on estimates of supply shortages during the first quarter of 2021, while fears over the US inventories build up eased after the cold weather conditions receded and refineries in Texas resumed production, which comes ahead of the American Petroleum Institute's preliminary data on the US crude inventories.

US crude rose 1.3% to the highest level since January 2020 at $62.97 a barrel, after opening at $62.15, and hit a low of $61.55, and Brent crude rose 1.4% to the highest since January 2020 at $66.76 a barrel, after opening at $65.81, and hit a low of $65.36.

US crude rose 5.5% on Friday, while Brent crude futures rose 5%, in their first daily gain in 3 and the largest daily gain since January 5.

Goldman Sachs Group estimated that the oil market would have a deficit during the first quarter of 2021, as the global demand for fuel would recover, in addition to OPEC-Plus supply cuts and Saudi Arabia's 1 million barrels voluntary cut in February and March.

Morgan Stanley also projected that the global oil market suffers from supply shortage of about 2.8 million barrels per day, and raised its forecast for Brent crude during the third quarter to reach $70 a barrel.

The cold weather that hit the central, western and southern regions of the US started to improve, as temperatures started to rise near zero levels, which is currently helping in the re-opening of refineries in Texas.

A deep freeze in the US forced most oil wells and refineries in Texas to suspend production as temperatures plummeted to minus 18 degrees, which has not happened since 1989.

Bearing in mind that Texas produces about 4.6 million barrels per day, with more than 31 refineries, according to US Energy Information Administration's data.

The American Petroleum Institute will release its preliminary data on US crude inventories, and the Energy Information Administration will release its official report on Wednesday.

Oil prices rose on Monday, extending gains for the second straight day, and jumped to a 13-month high, on estimates of supply shortages during the first quarter of 2021, while fears over the US inventories build up eased after the cold weather conditions receded and refineries in Texas resumed production.

US crude rose 1.3% to the highest level since January 2020 at $62.97 a barrel, after opening at $62.15, and hit a low of $61.55, and Brent crude rose 1.4% to the highest since January 2020 at $66.76 a barrel, after opening at $65.81, and hit a low of $65.36.

US crude rose 5.5% on Friday, while Brent crude futures rose 5%, in their first daily gain in 3 and the largest daily gain since January 5.

Goldman Sachs Group estimated that the oil market would have a deficit during the first quarter of 2021, as the global demand for fuel would recover, in addition to OPEC-Plus supply cuts and Saudi Arabia's 1 million barrels voluntary cut in February and March.

Morgan Stanley also projected that the global oil market suffers from supply shortage of about 2.8 million barrels per day, and raised its forecast for Brent crude during the third quarter to reach $70 a barrel.

The cold weather that hit the central, western and southern regions of the US started to improve, as temperatures started to rise near zero levels, which is currently helping in the re-opening of refineries in Texas.

A deep freeze in the US forced most oil wells and refineries in Texas to suspend production as temperatures plummeted to minus 18 degrees, which has not happened since 1989.

Bearing in mind that Texas produces about 4.6 million barrels per day, with more than 31 refineries, according to US Energy Information Administration's data.

Euro rose in European trade against dollar for fourth straight session, marking four-week highs amid improving sentiment in the market. 

EUR/USD rose 0.25% to 1.2180, after closing up 0.3% yesterday, the third profit in a row amid positive economic developments around the globe. 

The dollar index fell 0.1% in Tuesday for the fourth straight session, marking six-week lows at 89.94. 

The dollar's decline comes as investor interest surges on high risk currencies amid hopes for global recovery from the coronavirus pandemic. 

The dollar is also pressured by expectations that ultra low US interest rates won't be raised any time soon. 

Later today, Fed Chair Jerome Powell will testify on the Semiannual Monetary Policy Report before the Senate Banking Committee, via satellite.

Asian stock indices opened the second session of the week mixed, with China, Australia, Hong Kong, and New Zealand higher, while South Korea lost ground, as Japan shuts down for a bank holiday. 

From New Zealand, retail sales fell 2.7%, compared to a 27.8% surge in the third quarter, while sales excluding inflation fell 3.1%. 

Later today, Fed Chair Jerome Powell will testify on the Semiannual Monetary Policy Report before the Senate Banking Committee, via satellite.

US Congress and administration are still conducting negotiations to finalize the massive $1.9 trillion rescue package for the economy to revive it. 

China's CSI 300 rose 0.30% to 5,614, while Shanghai added 0.44% to 3,658. 

Hong Kong's Hang Seng rose 1.08%, while South Korea's KOSPI declined 0.50% to 3,064. 

New Zealand's NZX 50 fell 0.37%, while Australia's S&P/ASX 200 gained 0.54% to 6,817.