New York — Crude rose above $55 a barrel to hit a 16-month high on Monday as rising prospects of a tightening market after last week’s Organization of the Petroleum Exporting Countries (Opec) landmark deal to cut production has given speculators impetus to increase bets on higher prices. Monday’s gains take the rally since the Opec agreement was struck on Wednesday to 19% for Brent and 16% for US crude. Last week’s 12.2% increase was the largest one-week rise since February 2011. "Opec sentiment continues to support oil markets. Speculative short positions are still at elevated levels and as more traders unwind these positions they could trigger more support for oil prices," said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam. By 4.15pm GMT, Brent crude rose 49 cents to $54.95 a barrel, a 0.9% gain, after hitting $55.33, its highest since July 2015. US crude West Texas Intermediate (WTI) futures rose 23 cents to $51.91 a barrel, a 0.5% gain. WTI traded at a peak po...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.