Oil prices rise to near 1-year highs as vaccines, stimulus and Saudi Arabian production cuts lift the energy outlook

SourceBusiness Insider
SectorOil & Gas

US oil producers stand to benefit from Saudi Arabia's promised cut in output, which has already lifted prices Angus Mordant/Reuters Brent and WTI crude oil prices rose on Wednesday, approaching 1-year highs as investors bet stimulus and vaccines would fuel an economic recovery. Saudi Arabia's oil output cuts also lifted sentiment, while data showed a bigger-than-expected drop in US inventories. Analysts said 2021 is set to see a solid recovery in oil prices, as businesses reopen and global trade and travel resume. Sign up here our daily newsletter, 10 Things Before the Opening Bell. Oil prices rose on Wednesday to close to 1-year highs, as data hinted at stronger demand, while more stimulus and production cuts brightened the outlook. Brent crude - the international benchmark price - climbed 0.1% to $56.65 a barrel at 6.15am ET, having earlier risen above $57, its highest level since February. US WTI crude rose 0.28% hit trade at around its highest levels since February, at $53.38. Both prices have climbed sharply in 2021 already, with Brent crude and WTI each around 10% higher. It is a remarkable turnaround for oil prices, after demand tanked during the first wave of coronavirus lockdowns, causing the WTI price to fall into negative territory for the ...read more...