Oil Prices Increased to a 13-Month High
Oil prices increased to a 13-month high at the beginning of the week (today). While demand remained alive thanks to mass vaccinations, producers continued to restrain supply.
Brent oil remained in the band of $ 63.20 per barrel, up 77 cents, or 1.2 percent, just after climbing to $ 63.76, the highest session high since January 22, 2020.
U.S. West Texas Intermediate (WTI) crude oil futures remained at $ 60.51 a barrel, up $ 1.04, or 1.8 percent, after reaching the limit of $ 60.95. This is the highest level since 8 January 2020 at the start of the session.
Oil prices gained around 5 percent last week.
Prices have soared in recent weeks, supported by production cuts and contraction in supplies from the Organization of Petroleum Exporting Countries (OPEC) and OPEC+ group producers.
Russian Deputy Prime Minister Alexander Novak said that the global oil market is on the way to recovery and this year the oil price may be in the range of $ 45-60 per barrel.
He said, “We have seen low fluctuations in the past few months. This means the market is stable and prices are in line with the market situation.”
Meanwhile, US President Joe Biden began pushing for his tenure’s first major legislative success on Friday. Negotiations are accelerating with officials from the two parties for assistance with the $ 1.9 trillion coronavirus relief plan.
London-based PVM Oil Associates oil analyst Tamas Varga, implying that the long-awaited $1.9 trillion package has not yet passed and the labor market is struggling, underlined that some people need the aid package as soon as possible within the scope of the latest US business data.
Said, “The incentive will likely be approved in any form or form.”
You may also be interested in this: