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Market Digest Nigeria

Economy

Global crude oil price hits $63.32

oil

Global crude oil prices yesterday soared to their highest since January 2020 translating to 13 months pick as promise of vaccine rollouts propels demand.

oil

Oil pump jacks at sunset sky background. Toned.

Reuters report that Brent crude was up 88 cents, or 1.4per cent, at $63.31 a barrel at 1320 GMT, after climbing to a session high of $63.76, the highest since Jan. 22, 2020.

U.S. West Texas Intermediate (WTI) crude futures gained $1.14, or 2per cent, to $60.61 a barrel. It touched $60.95 – its highest since Jan. 8 last year, earlier in the session.

Oil prices gained around 5per cent last week.

Prices have rallied over recent weeks as supplies tighten, due largely to production cuts from the Organisation of the Petroleum Exporting Countries (OPEC) and allied producers in the group OPEC+.

Russian deputy Prime Minister Alexander Novak said the global oil market is on a recovery path and the oil price this year could average $45-$60 per barrel.

“We’ve seen low volatility in the past few months. This means the market is balanced and the prices we are seeing today are in line with the market situation,” Novak was quoted as saying.

Meanwhile U.S. President Joe Biden pushed for the first major legislative achievement of his term on Friday, turning to a bipartisan group of local officials for help on his $1.9 trillion coronavirus relief plan.

“The long-awaited $1.9 trillion package has not been passed.

latest U.S. job data hints at struggling labour market, the relief package cannot come soon enough for some,” said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.

“The stimulus will likely be approved in some shape or form”, he added.

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