EghtesadOnline: Oil prices soared on Monday to their highest in about 13 months as fears of heightened tensions in the Middle East prompted fresh buying, while hopes that a US stimulus and an easing of lockdowns will buoy fuel demand provided support.
Brent crude was up $1.09, or 1.8%, at $63.52 a barrel, after climbing to a session high of $63.76, the highest since Jan. 22, 2020.
US West Texas Intermediate crude futures gained $1.28, or 2.2%, to $60.75 a barrel. It touched the highest since Jan. 8 last year of $60.95 earlier in the session, CNBC reported.
Oil prices gained around 5% last week.
The Saudi-led coalition fighting in Yemen claimed late on Sunday it intercepted and destroyed an explosive-laden drone fired by the Houthi group toward the kingdom,raising fears of fresh Middle East tensions.
“An early spike in oil markets was triggered by the news,” said Kazuhiko Saito, chief analyst at commodities broker Fujitomi Co.
“But the rally was also driven by growing hopes that a US stimulus and easing of lockdowns will boost the economy and fuel demand,” he said. WTI may be pulled back by profit-taking as it reached a key $60 level, he added.
Oil prices have rallied over recent weeks also as supplies tighten, due largely to production cuts from the Organization of the Petroleum Exporting Countries and allied producers in the group OPEC+.