Oil prices jump to 13-month highs

Gulf Today Report 

Oil prices edged higher on Monday, their highest in 13 months due to tension in the Middle East hope for US stimulus and eased lockdown supporting demand.

Brent crude was up $1.09, or 1.8%, at $63.52 a barrel at 04:28 GMT while US West Texas Intermediate (WTI) crude futures gained $1.28, or 2.2%, to $60.75 a barrel.

The Saudi-led coalition fighting in Yemen said late on Sunday it intercepted and destroyed an explosive-laden drone fired by the Iran-aligned Houthi group toward the kingdom, state TV reported, raising fears of fresh Middle East tensions. 

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Kazuhiko Saito, chief analyst at commodities broker Fujitomi Co said, "an early spike in oil markets was triggered by the news."

"But the rally was also driven by growing hopes that a US stimulus and easing of lockdowns will boost the economy and fuel demand," he added.

Production cut from the OPEC+ has rallied oil prices in recent weeks as supplies tighten.