Oil posts biggest monthly gain in a year on tight supply, political tensions

Oil prices rose to end January with their biggest monthly gain in a year, boosted by a supply shortage and political tensions in Eastern Europe and the Middle East.

The most-active Brent contract, for April delivery, traded 74 cents higher, or 0.8%, to settle at $89.26 per barrel. The front-month contract, for March delivery, which expired at the end of the session, rose $1.18, or 1.3%, to finish at $91.21.

U.S. West Texas Intermediate crude rose $1.33, or 1.5%, to close at $88.15 a barrel.

The benchmarks recorded their highest levels since October 2014 on Friday, at $91.70 and $88.84, respectively, and their sixth straight weekly gain. They gained by about 17% this month, the most since February 2021.

Market analysts and Reuters sources widely expect OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, to keep to its policy of gradual production increases when it meets on Wednesday.

OPEC+ producers have raised their output by 400,000 barrels per day every month since August.

via Reuters