Oil prices continued to surge on Monday as Brent crude, global oil benchmark, hit $91.31 per barrel, ahead of an OPEC+ meeting on Wednesday.
A market survey on Monday morning indicated that Brent crude rose $1.28, or 1.4%, to $91.31 a barrel, after adding 69 cents on Friday compared to the US West Texas Intermediate (WTI) crude which added $1.14, or 1.3%, to $87.96 a barrel, having gained 21 cents on Friday.
It would be recalled that the benchmarks recorded their highest price levels since October 2014 and their sixth weekly gain in a row on Friday, with Brent crude rising to $91.70 and WTI peaking at$88.84.
The crude benchmarks were headed for about 17% gains this month, the most since February 2021.
Commenting on the development, an analyst at Fujitomi Securities, Toshitaka Tazawa, said: “Underlying anxiety about global supply shortages, coupled with ongoing geopolitical risks, have caused the market to start the week on a strong note.
“With an expectation that OPEC+ will keep the existing policy of gradual increase of production, oil prices will likely stay on a bullish sentiment this week”, he added.
He predicted that Brent would remain above $90 and WTI will head towards $90 per barrel.
Recently, major producers in the Organisation of the Petroleum Exporting Countries (OPEC) and allies led by Russia, collectively known as OPEC+, have raised their output targets each month since August by 400,000 barrels per day (bpd) as they try to make up for record production cuts made in 2020.
