Shafaq News/ Oil prices climbed 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 U.S. stimulus and an easing of lockdowns will buoy fuel demand provided support.
Brent crude was up $0.83, or 1.8%, at $63.18 a barrel at 0428 GMT, after climbing to a session high of $63.76, the highest since Jan. 22, 2020.
U.S. West Texas Intermediate (WTI) crude futures gained $1.27, or 2.2%, to $60.47 a barrel. It touched the highest since Jan. 8 last year of $60.95 earlier in the session.
Oil prices gained around 5% last week.
Oil prices have rallied over recent weeks also as supplies tighten, due largely to production cuts from the Organization of the Petroleum Exporting Countries (OPEC) and allied producers in the group OPEC+.
“On top of that, robust global stock markets boosted investors’ risk appetite,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.
Asian shares advanced to record highs on Monday as successful coronavirus vaccine rollouts globally raise hopes of a rapid economic recovery amid new fiscal aid from Washington.
“With cheap money supply amid monetary easing worldwide, swift rollout of the vaccine and tight supply from OPEC+ and U.S. shale oil producers, crude oil prices may be headed toward $70 a barrel,” Yoshida said.