TOKYO (Reuters) – Oil prices have risen to their highest level in about 13 months on Monday, as fears of rising tensions in the Middle East have led to a fresh buy, while hopes that a US stimulus and a reduction in bottlenecks will increase demand. combustible.
Crude Brent rose $ 1.09, or 1.8%, to $ 63.52 a barrel at 0428 GMT, after rising to a session high of $ 63.76, the highest since January 22, 2020 .
West Texas Intermediate (WTI) crude futures gained $ 1.28, or 2.2%, to $ 60.75 a barrel. It hit its highest level since Jan. 8 last year, with $ 60.95 earlier in the session.
Oil prices gained about 5% last week.
The Saudi-led coalition fighting in Yemen said late Sunday it had intercepted and destroyed an explosive-laden drone launched by the Houthi group aligned with Iran to the kingdom, state television reported, raising fears of tensions in the Middle East.
“The news triggered an early rise in oil markets,” said Kazuhiko Saito, chief analyst at commodity broker Fujitomi Co.
“But the rally was also driven by growing hope that a US stimulus and a reduction in blockages would increase the economy and fuel demand,” he said. WTI can be withdrawn by making a profit because it has reached a key level of $ 60, he added.
US President Joe Biden put pressure on Friday for the first major legislative fulfillment of his term, calling on a bipartisan group of local officials to help with his $ 1.9 trillion coronavirus aid plan.
Oil prices have also risen in recent weeks as supplies worsen, largely due to reduced production by the Organization of the Petroleum Exporting Countries (OPEC) and allied producers in the OPEC + group.
“In addition, strong global stock markets have stimulated investors’ risk appetite,” said Satoru Yoshida, a commodity analyst at Rakuten Securities.
Asian stocks hit record highs on Monday as the successful launch of the global coronavirus vaccine raised hopes for a speedy economic recovery amid new fiscal assistance from Washington.
“With a cheap supply of money amid global monetary easing, the rapid launch of the vaccine and the limited supply of OPEC + and shale oil producers in the US, oil prices could reach $ 70 on the barrel, “Yoshida said.
Reporting by Yuka Obayashi; Montage by Richard Pullin