SULAIMANI (ESTA) — Oil prices extended gains on Monday, with Brent futures nudging past $60 a barrel, supported by supply cuts among key producers and hopes for further U.S. economic stimulus measures to boost demand.
Brent crude for April rose 85 cents to $60.19 a barrel at 0843 GMT, the highest since January last year.
U.S. West Texas Intermediate crude futures for March advanced 76 cents to $57.61 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, Reuters reported.
Reuters cited OCBC’s economist Howie Lee as saying world’s top exporter Saudi Arabia sent a “very bullish signal” last week when it kept monthly crude prices to Asia unchanged despite expectations of small cuts.
“I don’t think anybody dares to short the market when Saudi is like this,” he added.
A weaker dollar against most currencies on Monday also supported commodities, with dollar-denominated commodities becoming more affordable to holders of other currencies, according to Reuters.
“A weak U.S. jobs report boosted hopes of further stimulus measures,” Reuters quoted ANZ analysts as saying, adding that energy products and industrial metals benefited from an increased appetite for risk among investors.
