KUWAIT CITY, Dec 14: Oil prices rose to $50.06 a barrel for the first time during the current fiscal year, during which Kuwaiti oil prices witnessed an unprecedented collapse, as prices reached their lowest levels last April, just $11.72 a barrel. Oil expert, Dr Muhammad Al-Shatti, said the news of the corona vaccine and the start of testing it in some countries contributed to supporting the oil market in a clear and noticeable way, and oil prices also increased, taking advantage of the atmosphere of optimism after OPEC+ collectively agreed on the strategy of equilibrating the markets, which begins next January, where the reduction will continue by about 7.2 million barrels per day.

He pointed out that the monthly average Kuwaiti crude oil prices, which are recovering, contributed to improving the price levels. Al-Shatti stressed that the Kuwaiti initiative restored consensus to OPEC+ through a gradual increase that starts with 500,000 barrels per day during the month of January 2021, and has the full support of OPEC+. The market also responded with great optimism.

Globally, oil prices retreated upon the settlement of yesterday’s session, with new restrictions imposed to confront the outbreak of corona, but it recorded weekly gains for the sixth time in a row. On the weekly level, the launch of the corona virus vaccination programs boosted hopes for a recovery in demand on fuel next year.

Upon settlement, the price of US crude futures, “NYMEX” for January delivery, fell by 0.5 percent to $46.57 a barrel, but recorded weekly gains of 0.7 percent. The price of futures contracts for Brent crude for February delivery fell 0.4 percent to $50.04 a barrel.

By Abdullah Othman Al-Seyassah Staff