Oil price hits highest level in over a year as vaccination programmes raise hopes of a recovery
Oil prices hit their highest levels for over a year amid signs that the global economy is recovering.
Brent crude rose above $60 a barrel for the first time since January 2020 as people all over the world are vaccinated against Covid-19.
It is hoped that a successful vaccination programme will fire up economies and boost the demand for oil.
Brent crude rose above $60 a barrel for the first time since January 2020 as people all over the world are vaccinated against Covid-19
Vandana Hari, oil analyst at Vanda Insights, said: ‘The biggest driver for the latest surge in prices was a sharp upturn in expectations for an oil demand recovery on signs that coronavirus may finally be in retreat.’
Demand has been on the up in Asia and in particular China, which has fought back quickly from the virus.
Other factors have also played their part to push up prices such as efforts by oil-producing nations, particularly Saudi Arabia, to limit output.
The move higher comes as BP continues to diversify away from oil and into green energy.
In the London-listed oil supermajor’s latest move to be net zero by 2050, it has spent £900million for the option to build two offshore wind farms in the Irish Sea.
The move is BP’s first foray into the UK offshore wind sector, but the price paid was described as ‘ridiculous’ by some established wind players.
Bernard Looney, BP chief executive, said this mark’s the firm’s entry into ‘one of the world’s best offshore wind markets’.
The oil price collapsed last year, falling below $20 a barrel, as lockdown restrictions hit demand for fuel and the global economy was plunged into recession.
BP, Shell and Exxon Mobil last week reported combined losses of £44billion for 2020 as their businesses suffered.