Oil prices rose to their highest level in just over a year on Monday. Brent futures surpassed $ 60 a barrel in hopes of taking supply cuts among key producers and further U.S. economic revival measures.
Brent crude for April reached an intraday high of $ 60.06 a barrel, its highest level since January last year. The front-month contract was $ 59.98, up 64 cents, or 1.1%, at 0537 GMT.
West Texas Intermediate (WTI) crude futures for March advanced 65 cents, or 1.1%, to $57.50 a barrel, the highest since January last year.
Saudi Arabia’s commitment to additional supply cuts in February and March after production cuts by OPEC and its allies, including Russia, helps stabilize global markets and support prices.
In a sign that prompt supplies are tightening, the six-month Brent spread settled at $2.33 on Friday after hitting a high of $2.44, its widest in a year.
The dollar, which was weak against most currencies on Monday, bolstered commodities, making dollar-denominated commodities more affordable for other currencies.
The weak US jobs report raised the hopes for more stimulus measures. Energy products and industrial metals are bolstered by increased risk appetite among investors.
Meanwhile, stronger crude oil prices are encouraging US producers to increase production.
An early indicator of future production, the number of US oil platforms rose to its highest level since May last week.