54,000 Saudis benefit from SDB COVID-19 support programs

54,000 Saudis benefit from SDB COVID-19 support programs

RIYADH: Oil prices continued to rise for the seventh week in a row, and made another weekly gain that will make the Brent crude price settle above the important $50 mark by the end of the year. West Texas Intermediate (WTI) is following this upward momentum and might breach the $50 barrier before the year-end. On the week closing, Brent crude rose to $52.26 per barrel and WTI crude moved up to $49.10 per barrel.

By the week closing, oil prices rose to a nine-month high. If oil prices continue to rise next week ahead of the holiday, this will be a complete two months of upward tendency. Optimism on vaccinations is outpacing bearish market developments: The production increase by the Organization of the Petroleum Exporting Countries (driven by Libya), the increase in supplies from Norway, the US crude oil rig count continuing to rise, and US gasoline stocks hitting a 16-week high as the pandemic stunts demand and lockdowns continue to be extended in Europe.

Intuitively, the recent oil price gains may be a bit premature, as a global recovery in oil demand is unlikely to take place before the second quarter of 2021. If the coronavirus vaccine rollouts become widespread,