Oil prices climb back to pre-pandemic levels

The price of oil has recovered to its pre-pandemic levels having hit an all-time low last year.

While demand for oil is still lower than normal, there are hopes of a speedier than expected economic recovery as vaccines are rolled out.

Oil prices are often seen as a barometer for economic activity, still struggling with the virus downturn.

“Black gold” has reached 60 dollars a barrel, having risen over 50% in the last few months.

Brent crude, the major benchmark for oil, has seen strong growth recently. Futures contracts, which are based on the price of future delivery, have jumped 59% since November.

West Texas Intermediate, the benchmark for US oil, last week rose above 55 dollars a barrel for the first time in over a year.

Demand has been rising in parts of the world, particularly Asia. Other factors have also played their part to push up prices such as efforts by oil-producing nations, particularly Saudi Arabia, to limit output.

Source: https://www.bbc.com/news/business-55975700

Leave a comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.