New oil price surge caps year of recovery since ‘Black Monday’

New oil price surge caps year of recovery since ‘Black Monday’

DUBAI: Oil prices resumed their surge on global markets on Tuesday as traders shrugged off the memory of "Black Monday" 2020, when some crude prices went into negative territory at the start of the pandemic recession. Brent crude, the global benchmark, went above $68 a barrel for the first time in over a year, while West Texas Intermediate, which approached minus-$40 at the depth of the oil crisis exactly a year ago, leapt above $64. The resurgence in the oil price “” which has seen some experts suggesting the possibility of a "supercycle" in which crude goes back above $100 a barrel “” is partly down to improved prospects as the global economy moves outs of pandemic lockdowns. The global rollout of coronavirus vaccines has led economic experts to predict a sharp recovery in growth in 2021, with the International Monetary Fund recently forecasting a sharp rise in economic activity for the rest of the year. China last week said its economy had grown by 18. 3 percent in the first quarter of the year. But oil analysts believe the actions of OPEC+ “” the producers' alliance led by Saudi Arabia and Russia “”had been the biggest factor in helping