The price of Oil hit an 11-month high on Friday, supported by Saudi Arabia’s pledge to cut output.
At the time of this report, Brent Crude has climbed 73 cents or 1.35% to $55.03 a barrel by 12.44pm GMT, the highest since late February 2020.
U.S. West Texas Intermediate (WTI) gained 61 cents or 1.20% to $51.44 a barrel, also its highest since late February 2020.
Nigeria’s blends Qua Iboe and Brass River were also up at the time of this report. Both blends at their last updated price on oilprice.com has gained 20 cents or 0.37% to $54.70.
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The flagship oil benchmarks; Brent Crude and WTI are on track for weekly gains of around 6%.
According to a Reuters report, “The surprise Saudi cut is keeping bulls at the helm of the energy complex,” said Stephen Brennock of oil broker PVM. “It will take a brave man to bet against the current bullish run of play.”
Earlier this week, Saudi Arabia pledged additional, voluntary oil output cuts of one million barrels per day (bpd) in February and March as part of a deal under which most OPEC+ producers will hold production steady in the face of new coronavirus lockdowns.
However, analysts said oil prices could see a correction in coming months, if their rallies were not backed by stronger fuel demand.
Severe mobility restrictions around the world to contain a surge in COVID-19 cases still weighed on fuel sales, weakening the prospect of energy demand recovery in the first half of 2021.
A rally in global shares also lent some support to oil prices, with Japan’s Nikkei hitting a three-decade peak, as investors looked beyond rising coronavirus cases and focused on hopes for an economic recovery later in the year.
By; Nnamdi M.