Oil hits 13-month highs as market rebalances By Reuters

By Noah Browning

LONDON (Reuters) – Oil prices rose to their highest level in about 13 months on Monday as vaccine demand pledged to revive demand and producers held back supply.

rose 77 cents or 1.2% to $ 63.20 a barrel at. 0955 GMT after climbing to a session of $ 63.76, the highest since January 22, 2020.

US West Texas Intermediate (WTI) crude futures rose $ 1.04 or 1.8% to $ 60.51 per share. Barrel. It touched $ 60.95 – the highest since January 8 last year, earlier in the session.

Oil prices rose about 5% last week.

Prices have risen in recent weeks as supplies have tightened, mainly due to cuts in production by the Organization of the Petroleum Exporting Countries (OPEC) and the allied producers in the OPEC + group.

Russian Deputy Prime Minister Alexander Novak said the global oil market is on a recovery path and oil prices this year could average $ 45- $ 60 per tonne. Barrel.

“We have seen low volatility in the last few months. This means that the market is balanced and the prices we see today are in line with the market situation,” Novak was quoted as saying.

Meanwhile, US President Joe Biden pushed for the first major legislative achievement of his term on Friday, reaching out to a two-party group of local officials for help with his $ 1.9 trillion coronavirus relief plan.

“The long-awaited $ 1.9 trillion package has not passed. As the latest U.S. job data suggests the struggling job market, the help package may not come fast enough for some,” said Tamas Varga, an oil analyst at London’s brokerage firm PVM Oil Associates.

“The stimulation is likely to be approved in some form or form,” he added.

The Saudi-led coalition fight in Yemen said late Sunday that it captured and destroyed an explosive-laden drone fired by the Iran-oriented Houthi group against the kingdom, reported state television and raised fears of new tensions in the Middle East.