EnergyWatch

Oil rebounds following Saudi price hike

A bit of an odd move, given the supply hike in January, the omicron uncertainty and the expectation of a better supplied market in the first quarter of 2022," says head of commodities strategy.

Photo: Jacob Ehrbahn

Oil prices rebound Monday morning after Saudi Arabia raised prices for its crude export, signaling confidence about coming demand in light of the new coronavirus variant Omicron.

"The Saudi move to increase pricing is driving the market today. A bit of an odd move, given the supply hike in January, the omicron uncertainty and the expectation of a better supplied market in the first quarter of 2022," says Warren Patterson, Singapore-based head of commodities strategy at ING Groep NV, to Bloomberg News.

A barrel of US reference oil West Texas Intermediate sells Monday morning for USD 67.72 per barrel against USD 68.13 on Friday. During Friday evening, the price dropped steadily.

European counterpart Brent trades concurrently for USD 71.30 against USD 71.59 on Friday – likewise following a substantial dive.

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