Oil prices were up Monday to over $71 a barrel following an announcement that Saudi Arabia would increase the price of crude, signalling confidence in demand despite the spread of the omicron variant of Covid-19.
Brent crude gained 2.1 percent to $71.35 per barrel, while West Texas Intermediate increased 2.35 percent to $67.82 per barrel as of 10:30 AM GMT.
Saudi Arabia, the world’s largest oil exporter, announced Sunday it would raise the price of crude oil by 80 cents up in January from the previous month. Meanwhile, the Organization of Petroleum Exporting Countries (OPEC) and their allies, including Russia, known as the OPEC+ group, announced last week that it would continue with its plan to increase monthly supply by 400,000 barrels per day in January, despite prices falling amid omicron fears.
Concerns surrounding the omicron virus have remained heightened, but some easing has been found with recent reports that virus only causes mild symptoms with no large increase in severity.
Equities and bonds also rose as fears around the variant eased.
Oil prices have also increased as prospects of a revival of the 2015 JCPOA Iran nuclear deal have dimmed, with indirect talks between the US and Iran breaking off last week. Talks are expected to resume later this week.
Last week, Saudi Aramco also announced that it had signed five agreements with French companies on a variety of projects.
The agreements included an announcement between Aramco and French renewable energy technology firm Gaussin to establish a modern manufacturing facility in Saudi Arabia focused on on-road and off-road hydrogen powered vehicles.
The signing of the agreements took place in Jeddah at an event organised by the Saudi Ministry of Investment. Attendants included Saudi Minister of Investment Khalid Al Falih, Minister Delegate for Foreign Trade and Economic Attractiveness of France Franck Riester, and Aramco President and CEO Amin Nasser.
