Brent Crude rises above $86 per barrel

Brent crude futures broke above $86 a barrel on Monday, a fresh high since October 2018 as global supply remained tight amid strong demand worldwide following an economic recovery from coronavirus pandemic-induced slumps.

Meanwhile, Saudi Arabia Energy Ministry said OPEC+ alliance should maintain its cautious approach to managing global crude supplies, a view backed by both Nigeria and Azerbaijan.

The benchmark Brent crude has been steadily rising since the fourth week of August amid an ongoing energy crunch in Europe and Asia, as well as inability of OPEC+ nations to increase output levels has pressured the market and bolstered the imbalances between supply and demand in recent months.

Meanwhile, US energy companies reduced oil and natural gas rigs for the first time in seven weeks, according to Baker Hughes in a report released on Friday.

Brent Crude oil is a major benchmark price for purchases of oil worldwide. While Brent Crude oil is sourced from the North Sea the oil production coming from Europe, Africa and the Middle East flowing West tends to be priced relative to this oil.

Source: Trading Economics