SINGAPORE: Oil prices rose on Monday to their highest in just over a year, with Brent futures nudging past $60 a barrel, boosted by supply cuts among key producers and hopes for further US economic stimulus measures to boost demand.
Brent crude for April touched an intraday high of $60.06 a barrel, the highest since January last year. The front-month contract was at $59.90 by 0728 GMT, up 56 cents, or 0.9 per cent. US West Texas Intermediate crude futures for March advanced 60 cents, or 1.1 per cent, to $57.45 a barrel, the highest since January last year. Saudi Arabia s pledge of extra supply cuts in February and March on the back of reductions by other members of the Organization of the Petroleum Exporting Countries and its allies, including Russia, is helping to balance global markets and support prices.
(Bloomberg) Saudi Arabia reduced crude oil supplies to at least 11 refiners in Asia and most buyers in Europe after the kingdom volunteered to cut its production by 1 million barrels a day for February and March.Aramco will supply less crude as part of long-term contracts next month, giving some Asian processors 20%-30% less than they had sought, according to company officials who received the notices but asked not to be identified as the information is private. Supplies to most European refiners were also cut and one refiner that typically buys small volumes from Saudi Arabia will not get any cargoes for February.Supply cuts were focused on heavier grades such as Arab Medium and Arab Heavy, the officials said. State-owned Aramco declined to comment.Saudi Arabia’s move to sell less oil comes amid an overall decline in crude demand across Asia due to peak refinery maintenance season from March to April. Separately, the resurgence of Covid-19 infections across Asia and Europe, a