Oil continues to rise

Oil extended its rally after Saudi Energy Minister Prince Abdulaziz bin Salman addressed a conference on the kingdom’s crude policy and views on net zero, with OPEC+ supply cuts tightening the market. Global benchmark Brent rose above $94 a barrel after a three-week streak of gains that has lifted prices by 11%. Prince Abdulaziz is set to be among the keynote speakers at the World Petroleum Congress in Calgary later on Monday, as Saudi Arabia and Russia extend supply curbs until the end of the year. In London, crude has risen almost 10% since the beginning of the year as OPEC+ curbs on output and demand outlooks improve, with refineries in China reaching full capacity and the U.S. potentially avoiding a recession. As crude inventories fall, speculators have raised their net bullish forecasts for Brent and U.S. crude to a combined 15-month high. The rise in oil will add to inflationary pressures around the world as central bankers, including the Fed, try to determine whether they are doing enough to slow the pace of price increases by raising interest rates. It will be a key week for monetary policy, with decisions from the Fed and the Bank of England, among others. “The focus is likely to turn to this week’s Fed meeting, but the increasing supply crunch and dwindling inventories are likely to continue to support bullish sentiment,” said Vandana Hari, founder of consultancy Vanda Insights.