Brent oil surged past $60 a barrel, boosted by supply cuts and expectations of fresh U.S economic stimulus measures, according to Reuters. U.S West Texas Intermediate gained 64 cents or 1.1% to hit $57.49 a barrel.
- Brent and U.S West Texas Intermediate are now at their highest levels since January 2020.
- Oil prices continued recovery after deeper cuts from Saudi Arabia who had earlier promised to reduce supply in February and March
- Saudi Arabia sent a “very bullish signal” last week when it kept monthly crude prices to Asia unchanged despite expectations of small cuts-Howie Lee, OCBC economist.
- A weaker dollar on Monday also supported oil prices as dollar-denominated commodities became more affordable to holders of other currencies.
- Declining hopes that Iranian oil exports would return to the market have also supported oil prices
- Attention now shifts to the $1.9 trillion COVID-19 aid package in the U.S expected to be passed by lawmakers this month.
Oil futures are currently gaining. CL1! is up 1.18%
