Brent Crude prices hit $60 a barrel early on Monday, rising above that threshold for the first time since the start of the COVID-19 pandemic early last year.
As of 8:54 a.m. ET on Monday, Brent Crude was trading at $60.10, up by 1.28 percent, and WTI Crude was up 1.25 percent at $57.56.
Continued production restraint from the OPEC+ group and the extra cut from the alliance’s key member and world’s top oil exporter, Saudi Arabia, supported oil prices at the start of this week, after oil posted last week its third consecutive weekly gain.
The tightening of the oil market, combined with prospects of a rise in demand later this year with COVID-19 cases now falling and vaccination rates increasing, have been boosting oil prices since the start of February.
The Brent futures curve is also strengthening in backwardation, the state of the market signaling tighter supplies with the prices of the nearer futures contracts higher than those further out in time.
Prompt oil prices are now at more than a one-year high—the last time Brent was above $60 a barrel was in late January 2020.
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Source: Oil Price
Image: Off shore oil rig about twenty minutes past sunset. Credit: arbyreed/Flickr