Oil prices rose on Monday to their highest in just over a year, with Brent against which Nigeria’s oil is priced rising past $60 a barrel.
Brent increased by 69 cents, or 1.2%, at $60.03 a barrel by 1218 as at 12:26 Nigerian time on Monday with U.S. West Texas Intermediate rose 64 cents, or 1.1%, to $57.49 a barrel.
“Oil prices are back close to pre-pandemic levels,” Reuters quoted Norbert Rücker, an analyst as saying.
The oil market continues to tighten with deeper cuts from Saudi Arabia who pledged extra supply cuts in February and March on the back of reductions by other members of the Organization of the Petroleum Exporting Countries and its allies.
In a sign that prompt supplies are tightening, the six-month Brent spread hit a high of $2.54 on Monday, its widest since January last year.