TOKYO (Reuters) – Oil prices rose to their highest level in about 13 months on Monday as fears of rising tensions in the Middle East led to new purchases, while hopes of a US stimulus and a easing of the closures will increase the demand for fuel, provide support.
Brent crude rose $ 1.09, or 1.8%, to $ 63.52 a barrel at 0428 GMT, after climbing to a session of $ 63.76, the highest since January 22, 2020.
U.S. crude Texas Intermediate (WTI) crude futures rose $ 1.28, or 2.2%, to $ 60.75 a barrel. It hit the highest since January 8 last year of $ 60.95 earlier in the session.
Oil prices rose by about 5% last week.
The Saudi-led coalition fighting in Yemen late Sunday said it was intercepting and destroying an explosive-laden drone fired at the kingdom by the Iran-oriented Houthi group, state TV reported, fearing new tensions in the Middle East. East gives rise to.
“An early rise in the oil markets was caused by the news,” said Kazuhiko Saito, chief analyst at commodity broker Fujitomi Co.
“But the protest was also driven by growing hopes that a U.S. stimulus and the easing of the lockout will boost the economy and demand for fuel,” he said. WTI could be pulled back by profit-taking because it reached a significant $ 60 level, he added.
U.S. President Joe Biden is campaigning for the first major legislative performance of his term on Friday, turning to a dual group of local officials for help with his $ 1.9 billion coronavirus aid plan.
Oil prices have risen over the past few weeks as stocks increase, mainly due to production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and related producers in the OPEC + group.
“In addition, robust global stock markets have increased investors’ risk appetite,” said Satoru Yoshida, a commodity analyst at Rakuten Securities.
Asian stocks rose to a record high on Monday as successful vaccination of coronavirus vaccines worldwide raised hopes of a rapid economic recovery amid new fiscal aid from Washington.
“With cheap money supply amid monetary easing worldwide, rapid vaccine deployment and a tight supply of OPEC + and US shale oil producers, the price of crude oil could be at $ 70 a barrel,” Yoshida said.
Reporting by Yuka Obayashi; Edited by Richard Pullin