Oil prices topped $86 a barrel after Saudi Arabia said the OPEC+ alliance should maintain a cautious policy on global supply because the epidemic still poses a threat to demand.
Brent crude oil futures, the global benchmark, rose 1% at one point. WTI crude oil futures hit their highest level since 2014. Saudi Energy Minister Abdulaziz bin Salman said in an interview over the weekend that oil-producing countries should not take higher oil prices for granted. This conservative position is echoed by Nigeria and Azerbaijan.
Oil prices have more than doubled in the past 12 months, adding to inflation fears. Despite the surge in demand, OPEC and its allies have shown restraint in increasing production. That helped push Brent oil prices to their highest level since 2018.
"the Saudi comments reinforce OPEC+ 's view that it will stick to a cautious policy, which means that supply will continue to be tight for the rest of the year as demand appears to increase," said Warren Patterson, head of commodity strategy at ING Groep NV.
Brent crude for December delivery on ICE Europe rose 0.1% to $86.37 a barrel. WTI crude for December delivery rose 1.1% to $84.70 a barrel on the New York Mercantile Exchange. Earlier, it hit $84.76, the highest level since October 2014.