The price of crude oil rose on Monday to its highest in 13 months amidst fears of increased tension in the Middle East.
Tre rise also followed hopes that a stimulus and the easing of lockdowns in the United States, Reuters reported.
Brent crude was up 1.6 per cent to $63.45 a barrel at 0806 GMT, after climbing to a session high of $63.76. It is the highest since January 22, 2020, according to the news wire’s data.
U.S. West Texas Intermediate (WTI) crude futures gained 2.2 per cent, to sell $60.75 a barrel. Earlier, it touched $60.95 – its highest since January 8 last year.
On Sunday, the Saudi-led coalition fighting in Yemen said it destroyed an explosive-laden drone fired by the Iran-aligned Houthi group toward the kingdom, raising fears of fresh Middle East tensions.
Reuters quoted the chief analyst at commodities broker Fujitomi Co, Kazuhiko Saito, as saying that “an early spike in oil markets was triggered by the news.”
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He said, “the rally was also driven by growing hopes that a U.S. stimulus and easing of lockdowns will boost the economy and fuel demand.”
Also, U.S. President Joe Biden pushed for a $1.9 trillion coronavirus relief plan to be approved by Congress.
Oil prices have rebounded 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+.
Satoru Yoshida, a commodity analyst with Rakuten Securities, said, key to that robust global stock markets boosted investors’ risk appetite.
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