Brent Crude Rises to $63.51 per Barrel as Demand Improves

Brent Crude Rises to $63.51 per Barrel as Demand Improves

The international benchmark Brent crude trades at $63.51 per barrel Monday, rising by a 1.72% after closing Friday at $62.43 a barrel following an improvement in demand.

For Nigeria, and other oil-dependent economy, this is a positive development following expectation of increase revenues from oil receipts.

Earlier today, oil price spike to 13-months high despite bearish forecast from International Energy Agency and Oil cartel.

Both IEA and the Organisation for the Petroleum Exporting Countries (OPEC) had recently submitted weak oil demand projections.

Now, oil market data shows that today price surge is the highest since January 22 when Brent crude traded at $64.58 per barrel.

Reaching its highest level since Jan. 8 when it traded at $65.65, American benchmark West Texas Intermediate (WTI) increased by 2.15%.

WTI was priced $60.75 per barrel early today relative to end-of-day trading at $59.47 a barrel during the previous session.

Oil prices surge have long been supported by vaccine developments in the hope of a demand rebound.

It has been noted that Saudi Arabia’s massive production cut pledge on the back of OPEC+ cuts offers a further stimulus to exert upward oil price.

The price of OPEC basket of thirteen crudes stood at $60.77 a barrel on Friday, compared with $60.54 the previous day, according to OPEC Secretariat calculations

Optimism over the positive developments on the expected $1.9 trillion stimulus package in the US, the world’s largest oil consumer, also buoyed oil prices.

The plan includes $1,400 for individuals earning up to $75,000 per year and their dependents, with the provision of $2,800 for married couples earning up to $150,000.

A family of four that meets all requirements would receive $5,600.

Last week, House Speaker Nancy Pelosi said the goal is to have the legislation “on the president’s desk” for Joe Biden to sign into law by March 14.

Brent Crude Price Drops to $61.01 after 8-Day Rally

Brent Crude Rises to $63.51 per Barrel as Demand Improves