After Saudi Arabia raised crude oil selling prices in July, oil prices have risen more than $ 2 (£ 1.60) in initial trade on Monday. This is believed to be an indication of oil supply problems despite OPEC + agreeing to accelerate the increase in its production over the next two months.
Brent crude futures rose 1.5 percent or $ 1.80 (£ 1.44) to $ 121.52 (£ 97.25) a barrel at 23:19 GMT after an intraday high of $ 121.95 (£ 97.60), up 1.8 percent from Friday.
The price of Brent crude has fallen slightly after hitting $ 124 (£ 99.24) a barrel earlier this week which was the highest level since March.
The reduction will not affect gas station consumers or help inflation that is being felt around the world.
The recovery from the pandemic combined with sanctions on Russian oil will continue to keep oil prices high, and a leading oil analyst warns that these prices have come to a halt.
Matt Smith, an oil analyst for the Americas at Kpler, told CNN Business that “three-digit oil prices” are likely to hold.
He added: “If Chinese demand rises again after the blockades and Russia continues to experience a drop in production, then a new test of the maximum of $ 139 (£ 111.26) seen earlier this year is not out of the question. possibilities”.
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SPI Asset Management managing partner Stephen Innes said: “A few days after opening the thorns a little more, Saudi Arabia wasted no time in raising its official selling price for Asia, its primary market. … seeing side effects on futures open around the world. oil market spectrum “.
The majority believes that the OPEC + measure is unlikely to increase enough to meet demand after member countries, including Russia, increase production as demand in the United States soars and China eases demand. blockages.
Commonwealth Bank analyst Vivek Dhar said: “While this increase is much needed, it is not meeting expectations of growing demand, especially with the EU’s partial ban on oil imports to Russia.”