Oil Prices Touching Highest Level in Several Months

Oil prices touched a multi-month high on Monday, thanks to expectations that OPEC and allied producers may restrict production at current levels in February as the coronavirus pandemic keeps first-half demand concerns high.

Prices rose in line with the financial markets in general, while Brent crude reached $ 53.17 a barrel, its highest level since March 2020. US West Texas Intermediate crude touched $ 49.71, its highest level since February 2020.

Brent crude futures for March delivery were at $ 52.97 a barrel, up $1.17, or 2.3%, while U.S. West Texas Intermediate crude futures rose a dollar, or 2.1%, to $ 49.52 a barrel.

Mohamed Barkindo, OPEC Secretary-General, said on Sunday that while demand for crude is expected to rise by 5.9 million barrels per day to 95.9 million barrels per day this year, the organization expects many risks that threaten the descent of demand in the first half of 2021.

And prices ended 2020 down 20% from the average of 2019, as it is still recovering from the impact of global isolation measures, which reduced the demand for fuel, even at a time when major producers around the world agreed to implement record production cuts.

OPEC and allied producers including Russia, a group known as OPEC+, decided last month to increase production by 500,000 barrels per day in January, in anticipation of increased demand, and agreed to hold a monthly meeting to review production.