Zhitong Finance APP was informed that oil prices continued to rise to US$86/barrel as Saudi Arabia previously stated that the OPEC+ alliance should maintain its cautious attitude towards global crude oil supply given that the epidemic still poses a threat to demand. According to
data, as of press time, Brent crude oil spot prices have risen above US$86, at US$86.44/barrel. Brent crude oil futures once stood at US$86/barrel, and are now at US$85.38/barrel. They have been trading for seven consecutive years. Showing an upward trend last week; WTI crude oil futures reached their highest point since 2014, now trading at $84.72 per barrel.
Oil prices have more than doubled in the past 12 months as the global economy recovers from the chaos caused by the epidemic. Despite the surge in crude oil consumption, OPEC and its allies have been restrained in easing the severe production cuts implemented in 2020 to save oil prices, which has also pushed Brent crude oil prices to the highest level since 2018 to a certain extent.
Warren Patterson, head of commodities strategy at Groep NV in Singapore, said: "The Saudi comments reinforce the view that OPEC+ will stick to its cautious approach, and as demand improves, it does mean that the market will continue to tighten for the rest of the year. So, Further tightening will certainly bring the possibility of further volatility."
Separately, the rise in oil prices was also supported by a strong rebound in natural gas, which boosted demand for crude oil products as alternatives. Prince Abdulaziz said that if the northern hemisphere winter is colder than normal and business demand shifts from natural gas to crude oil, crude oil consumption could increase by 500,000 to 600,000 barrels per day. But he also warned that increased crude supplies from OPEC+ would do little to curb gas markets in Europe and Asia or gasoline costs in the United States.
