SULAIMANI (ESTA) — Oil prices rose on Monday to near 7-year highs hit in the previous session, amid concerns over tight supply as well as geopolitical tensions in Eastern Europe and the Middle East.
Brent crude rose $1.18 to $91.21 a barrel at 0558 GMT, after adding 69 cents on Friday.
U.S. West Texas Intermediate (WTI) crude futures added $1.01 to $87.83 per barrel, having gained 21 cents on Friday.
“Underlying anxiety about global supply shortages, coupled with ongoing geopolitical risks, have caused the market to start the week on a strong note,” Reuters quoted Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd., as saying.
“With an expectation that OPEC+ will keep the existing policy of gradual increase of production, oil prices will likely stay on a bullish sentiment this week,” he added.
OPEC members and allies led by Russia, together called OPEC+, have raised their output target each month since August by 400,000 barrels per day (bpd) as they unwind record production cuts made in 2020.
But they have failed to meet their production targets as some members have struggled with capacity constraints.
At its Feb. 2 meeting, OPEC+ is likely to stick with a planned rise in its oil output target for March, several OPEC+ sources told Reuters.
