Brent crude oil price rises above $62

Oil prices have rallied again in the world markets following a nosedive to new five-year lows, with Brent crude at above USD 62.

On Monday, front-month Brent crude prices witnessed a rise of more than a dollar to USD 62.46 per barrel on the New York Mercantile Exchange, while US benchmark West Texas Intermediate (WTI) settled at 57 dollars and 83 cents, up 70 cents from Friday’s closing level.

Analysts believe that Brent crude prices would most likely remain above 60 dollars per barrel for the rest of the year.

Oil prices rallied Friday, shaking off sharp losses earlier in the day and rebounding from their lowest level in more than five years.

Oil prices have been falling throughout 2014, nearly being halved since June as a result of disproportionally increased supplies. Last week, the price of Brent crude oil reached a five-year low after tumbling below USD 59 a barrel for the first time since May 2009.

The sudden decrease in prices also stems from the refusal of some members of the Organization of the Petroleum Exporting Countries (OPEC), particularly Saudi Arabia and some other Persian Gulf monarchies, to cut their current output.

At its 166th ministerial meeting held in the Austrian capital of Vienna on November 27, OPEC “decided to maintain the production level of 30 million barrels per day,” where it has stood for three years.

By Press TV

 

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