Oil prices saw a significant surge on Monday morning ahead of the Bank of England (BoE) meeting this week, where it was suggested that this rate hike might be the final one. This increase in oil prices is also attributed to supply cuts by Saudi Arabia and Russia, as well as a series of positive manufacturing reports from China, the world’s second-largest economy.
Brent crude moved 71 percent, equivalent to 67 cents, reaching $94.60 as of 06:30 WAT, while West Texas Intermediate (WTI) rose to $91.54, marking a gain of 77 cents or 85 percent from its Friday position.
Alongside the supply reductions by these major oil-producing nations, market observers are closely monitoring central bank rate decisions and commentary, including those from the Bank of England, the Bank of Japan, and the U.S. Federal Reserve. Additionally, key economic data from China is of considerable interest.
The recent increase in Brent and WTI prices marks the third consecutive week that both benchmarks are reaching their highest levels since November.
They are also poised for their most substantial quarterly gain since the first quarter of 2022, when Russia’s invasion of Ukraine occurred.
This price surge follows the extension of supply cuts by Saudi Arabia and Russia through the end of the year, as outlined in the OPEC+ group’s strategy.
Additionally, the surge in prices has been influenced by heightened production from Chinese refineries, driven by robust export margins.