Oil Rebounds Following Saudi Arabia’s Decision to Raise Crude Price

Oil Rebounds Following Saudi Arabia’s Decision to Raise Crude Price

The logo of Aramco is seen as security personnel walk before the start of a press conference by Aramco at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019. REUTERS/Hamad I Mohammed/File Photo

Oil prices rebounded on Monday after Saudi Arabia, the world’s largest oil exporter, raised the prices of its crude sold to Asia and the United States.

Brent crude for February delivery rose 2.3 percent to $71.53 per barrel. US West Texas Intermediate (WTI) crude futures rose 2.2 percent, to $67.67 a barrel.

On Sunday, Saudi Arabia increased the official selling price of Arab Light crude to Asia and the United States in January by 80 cents compared to the previous month.

The price hikes were implemented despite a decision last week by the Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC+, to continue increasing supplies by 400,000 barrels per day in January.

Prices also received a boost as prospects for an increase in Iranian oil exports diminished after indirect talks between Washington and Tehran aimed at reviving the 2015 nuclear deal were suspended.

Meanwhile, the World Petroleum Council conference kicked off this week; but the list of attendees of energy sector executives