Price of oil rises above $60 for the first time in over a year

Price of oil rises above $60 for the first time in over a year
Credit: Belga

The price of a barrel of oil went above $60 (approximately €49.46) on Monday for the first time since 9 January 2020 after a damaging year due to the coronavirus crisis.

Around 12:15 (Brussels time), the price of a barrel of American WTI for the month of March grew by 1.78% compared to Friday’s closing, at $60.53 (€49.90), after having passed the 60 dollar mark in the first Asian trades.

The barrel of North Sea Brent for delivery in April was at the same time gaining 1.27% in London, at $63.22 (€52.12), the highest since 22 January 2020.

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The optimism regarding Covid-19 vaccines, combined with liquidity injected by central banks, is helping to fuel this increase, according to Carlo Alberto De Casa, analyst at Activtrades.

Crude oil has been on the rise for several months due to renewed optimism about the outlook for the world economy, the hope generated by the vast US stimulus package, and the belief that the slowdown in the pace of infections and the launch of vaccination campaigns will allow a return to some form of normality, encouraging demand.

Monday, several observers added to this the announcement by Saudi Arabia on Saturday of a new thwarted attack against its territory by Houthi rebels from Yemen.

The particular weather situation in the United States was also likely to support the upward movement of oil prices, Texas being prey to a cold spell that could, according to several observers and market players, weigh on production because of the shutdown of some wells, power cuts and disruption of transport.

The International Energy Agency (IEA) and the Organization of Petroleum Exporting Countries (Opec) shared last Thursday a cautious outlook on demand for oil this year. And prices at their highest level in more than a year are encouraging producers to turn on the tap a little more.

The Brussels Times

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