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Oil prices rise after Saudi price hike

Oil prices

Oil prices rose on Monday morning, with Saudi Arabia announcing an increase in the pricing of its oil for January delivery.

Crude oil prices rose above $70 a barrel, as Saudi Aramco announced yesterday, Sunday, an increase in the pricing of its oil in January, by $3.30 a barrel above the benchmark.

Aramco’s price hike is considered a sign of optimism from the Kingdom, the largest global exporter of crude, about the improvement in demand and prices.

Oil prices

At 06:47 GMT, the prices of the futures contracts for the international standard, Brent crude, for February delivery, rose by 2.45 percent, or $1.71, to $71.60 a barrel.

In the same direction, the prices of US West Texas Intermediate crude futures for January delivery rose 2.63 percent, or $1.73, to $68 a barrel.

Despite the high prices, the pressures imposed by the Coronavirus Omicron variant keep oil prices below the level of $80 per barrel of Brent recorded in the past two months.

Despite the assurances of the World Health Organization regarding the severity of the natural symptoms of the new variant, the markets are still afraid of the acceleration of infections with the advent of winter.

OPEC+ decisions

In a related context, the international oil company Oilprice confirmed that the recent OPEC+ decisions have reduced tensions in the oil markets.

It should be noted that oil prices ended last week with relative stability, amid widespread fears of a rise in Omicron infections wand its broad repercussions on reducing global demand for crude oil and fuel.

The Oilprice report said that OPEC+ managed to stabilize oil prices after an incredibly volatile week.

The report stated that the most expected event last week was a decision by OPEC+ on whether to stop the monthly oil production increase of 400,000 barrels per day.

It ended up being a regular event, as OPEC+ agreed to stick to the original plan but retain the option to reverse this decision if necessary.

Oilprice indicated that the OPEC+ alliance addressed the market’s concerns, and calmed its tensions regarding Omicron. OPEC+ pledged to convene quickly if market conditions change.

Countries that have so far overproduced their quotas will also see a cap on their future production targets in order to balance their annual figures.

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