On Monday, Oil Prices jumped as good signals of global economic growth bolstered the outlook for energy demand, and the US announced it was considering steps to reduce excessive costs. Brent crude was trading at $83.44 a barrel at 2:28 p.m. (1828 GMT), up 71 cents, or 0.83 percent, after losing over 2% the previous week. After a 3% drop last week, US oil rose 68 cents, or 0.84 percent, to $81.95 a barrel. In early trading, both contracts surged by more than $1 a barrel.
On Saturday, President Joe Biden hailed the ratification of a long-delayed $1 trillion infrastructure measure by Congress, saying it will stimulate economic development and increase demand. “Global demand is exceeding supply right now – the Build Back Better plan could exacerbate that situation – and there’s little the Biden Administration can do to reply to meet that demand,” said Phil Flynn, senior analyst at Price Futures Group, New York City.
Last week, the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, commonly known as OPEC+, to not accelerate their planned production increases provided more price support. On Saturday, Biden said his government had “additional weapons” to cope with rising Oil Prices, including urging OPEC+ to supply more petroleum to cool the market. On Monday, US Energy Secretary Jennifer Granholm indicated that Washington was examining its options for addressing high gasoline and heating prices in the US, which some analysts believe might include accessing the US Strategic Petroleum Reserve.
China’s export growth slowed in October but exceeded expectations, boosted by increased global demand ahead of the winter holiday season and improvements in coronavirus-affected supply chains. Saudi Arabia raised the price of its benchmark crude for Asian consumers in December on Friday, outperforming market expectations.