Oil prices rose to their highest level in a year on Monday, with Brent oil futures moving to around $ 60 a barrel, backed by supply cuts at key producers and hopes for further US stimulus measures to boost demand.
April Brent crude reached an intraday high of $ 60.06 per barrel, the highest level since January last year. The contract in the first month was at $ 59.98, an increase of 64 cents (+ 1.1%).
March WTI futures rose 65 cents (+ 1.1%) to $ 57.50 a barrel, the highest since January last year.
Saudi Arabia’s promise to cut supplies in February and March as a result of emissions reductions by other OPEC members and its allies, including Russia, helps balance global markets and boost prices.
As a sign of tight supplies, the six-month Brent oil spread settled to $ 2.33 on Friday after reaching a high of $ 2.44, the widest in a year.
OCBC economist Howie Lee said the world’s leading exporter Saudi Arabia sent out a “very bullish signal” last week, keeping monthly crude oil prices in Asia unchanged despite expectations of small cuts.
The weaker dollar against most currencies on Monday also supported commodities, with dollar-denominated commodities becoming more accessible to holders of other currencies.
“Weak news of job opportunities in the US has strengthened hopes for further stimulus measures,” ANZ analysts said, adding that energy products and industrial metals are benefiting from investors’ increased desire for risk.
Higher oil prices, meanwhile, are encouraging US producers to increase production.
Development of Brent oil prices
Development of WTI oil prices