Crude Oil Blasted Through $63 Per Barrel on Monday

Brent crude oil rose above $63 per barrel on Monday during the London trading session after establishing a gap from the $62.61 barrel it closed on Friday.

The global benchmark for Nigerian crude oil, Brent crude, rose to $63.72 per barrel in the early hours of Monday before pulling back to $63.36 per barrel as of 8:50 am Nigerian time.

Despite the warning by experts that a series of factors could derail the ongoing bullish run of the commodity, businesses and investors remain bullish, especially with economies gradually reopening globally and China, the world’s largest importer of the commodity increased its importation.

Also, the comment made by Saudi-led coalition fighting in Yemen on Sunday that it intercepted and destroyed an explosive-laden drone fired by Iran-aligned Houthi group toward the kingdom boosted the oil prices as energy investors interpreted it as the crisis that could disrupt future crude oil production from the region.

“An early spike in oil markets was triggered by the news,” said Kazuhiko Saito, chief analyst at commodities broker Fujitomi Co.

“But the rally was also driven by growing hopes that a U.S. stimulus and easing of lockdowns will boost the economy and fuel demand,” he said.