Oil prices rose on Monday to their highest in just over a year, with Brent nudging past $60 a barrel, boosted by supply cuts among key producers and hopes for further economic stimulus measures in the United States that can boost demand.
Global benchmark Brent crude,was trading at $60.10, up by 1.28 percent as of 8:54 a.m. ET on Monday the highest since the start of the pandemic last year.
WTI Crude was up 1.25 percent at $57.56 a barrel as at 8.54 a.m. ET
Drivers of the Rise in Oil prices
China has been a key driver of the market rebound with the number of tankers sailing toward the nation jumping to a six-month high on Friday. Ben van Beurden the Chief Executive Officer of Royal Dutch Shell Plc said last week that fuel sales in the nation are back into “significant growth mode.” Meanwhile in India demand is almost back to year-ago levels of consumption.
This is a major comeback from demand destruction that was caused by the global pandemic after it forced countries to lock down resulting to devastated economies and grounded planes. The revival is a boost for global energy companies and petro-states whose budgets were ravaged last year.
Global stockpiles in onshore tanks and floating storage are estimated by the International Energy Agency to have shrunk by about 300 million barrels since OPEC and its allies made deep production cuts in May.
Prompt oil prices are now at more than a one-year high with the tightening oil market and hopes of a large stimulus package in the United States boosting the risk sentiments on the oil market in recent day