SINGAPORE: Brent crude oil prices rose to $70 a barrel on Monday, supported by ongoing output cuts led by OPEC and Russia, and ignoring a rise in US and Canadian drilling activity that points to higher future output in North America.
Brent crude futures, the international benchmark for oil prices, were at $70 per barrel at 0558 GMT, up 13 cents from their last close.
US West Texas Intermediate (WTI) crude futures were at $64.53 a barrel, up 23 cents.
Both benchmarks last week reached levels not seen since December 2014, with Brent touching $70.05 a barrel and WTI reaching as high as $64.77.
ANZ bank said on Monday oil prices had recently risen on data that continued to show the market is tightening.
Oil markets have been well supported by production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia which are aimed at propping up crude prices.
The cuts started in January last year and are set to last through 2018, and they have coincided with healthy demand growth, pushing up crude prices by more than 13 percent since early December.
But other factors, including political risk, have also supported crude.
“Tighter fundamentals are (the) main driver to the rally in prices, but geopolitical risk and currency moves along with speculative money in tandem have exacerbated the move,” US bank JPMorgan said in a note.
Attracted by tighter supplies and strong consumption, financial investors have raised their net long US crude futures positions, which would profit from higher prices, to a new record, the US Commodity Futures Trading Commission (CFTC) said on Friday.
Some analysts, though, have been warning of a downward correction after the sharp price gains since December.
“Many believe that oil prices above $60 will self-correct as this level of prices will encourage substantially more drilling in US shale,” said William O’Loughlin, investment analyst at Australia’s Rivkin Securities.
US energy companies added 10 oil rigs in the week to January 12, taking the number to 752, energy service firm Baker Hughes said on Friday.
That was the biggest increase since June 2017. ANZ bank said the jump came “as shale producers quickly reacted to the strong rise in prices in 2018.”
The picture was similar in Canada, where energy firms almost doubled the number of rigs drilling for oil last week to 185, the highest level in 10 months.
The high prices for crude, which is the most important feedstock in the petroleum industry, have also crimped profit margins for oil refiners, resulting in a decline in new crude orders.
Brent crude oil rises to $70 on output cuts, ignores rising North American drilling activity
Brent crude oil rises to $70 on output cuts, ignores rising North American drilling activity
BYD Americas CEO hails Middle East as ‘homeland for innovation’
- In an interview on the sidelines of Davos, Stella Li highlighted the region’s openness to new technologies and opportunities for growth
DAVOS: BYD Americas CEO Stella Li described the Middle East as a “homeland for innovation” during an interview with Arab News on the sidelines of the World Economic Forum.
The executive of the Chinese electric vehicle giant highlighted the region’s openness to new technologies and opportunities for growth.
“The people (are) very open. And then from the government, from everybody there, they are open to enjoy the technology,” she said.
BYD has accelerated its expansion of battery electric vehicles and plug-in hybrids across the Middle East and North Africa region, with a strong focus on Gulf Cooperation Council countries like the UAE and Saudi Arabia.
GCC EV markets, led by the UAE and Saudi Arabia, rank among the world’s fastest-growing. Saudi Arabia’s Public Investment Fund has been aggressively investing in the EV sector, backing Lucid Motors, launching its brand Ceer, and supporting charging infrastructure development.
However, EVs still account for just over 1 percent of total car sales, as high costs, limited charging infrastructure, and extreme weather remain challenges.
In summer 2025, BYD announced it was aiming to triple its Saudi footprint following Tesla’s entry, targeting 5,000 EV sales and 10 showrooms by late 2026.
“We commit a lot of investment there (in the region),” Li noted, adding that the company is building a robust dealer network and introducing cutting-edge technology.
Discussing growth plans, she envisioned Saudi Arabia and the wider Middle East as a potential “dreamland” for innovation — what she described as a regional “Silicon Valley.”
Talking about the EV ambitions of the Saudi government, she said: “If they set up (a) target, they will make (it) happen. Then they need a technology company like us to support their … 2030 Vision.”
