Oil prices resumed gains in early week trading after Saudi Arabia said OPEC+ still needed to be wary of global crude oil production as threats to demand remained due to Covid-19.
He added that producing countries should not take lightly the current price increase.
Towards the end of the Asian session, Brent crude futures rose 0.8% at $ 85.32 a barrel, taking it to its latest three -year high.
US WTI trading was up 1% to $ 84.60 a barrel, remaining strong at a seven -year high.
Although demand has begun to recover and crude oil supply is declining as production by OPEC+ is released at current levels, Saudi Arabia warns that they need to be wary of risks from Covid-19 which still poses a threat to oil demand.
This indirectly indicates that OPEC+ will continue to remain at its current production level of 400,000 barrels per month despite facing upward price pressures.
Subsequently, black commodity trade continued to increase, coupled with support from the lowest level of oil supplies in the US and the shift of consumers to crude oil following the surge in coal and natural gas prices.
