Oil jumps 3% after Saudi Arabia raises January's prices

Oil prices rose 3% on Monday, resuming recovery after hitting a 4-month low on Friday, which comes after Saudi Arabia raised official selling prices for crude sold to Asia and the US, and news about Iran's nuclear talks reaching a dead-end.

US crude rose 3% to $68.34 a barrel, after opening at $66.39, and hit a low at $66.39, and Brent crude rose 2.9% to $71.90 a barrel, after opening at $69.88, and hit a low at $69.87.

The US crude lost 1.4% yesterday, and Brent fell 0.8%, as recovery attempts from a 4-week low halted.

Oil prices lost 3.5% last week, the sixth straight weekly loss, in the longest weekly losses streak since October 2018.

The longest weekly losses streak in 3 years came due to renewed fears about a market surplus, especially after many major oil consumers decided to release from their strategic oil reserves, and OPEC-Plus decision to continue increasing production despite the emergence of the Omicron Covid variant and its impact on fuel demand.

Saudi Arabia raised official selling prices for all crude grades sold to Asia and the US by up to 80 cents from the previous month.

This comes despite the spread of the new Omicron Covid variant in most parts of the world, but news from South Africa indicate the variant has shown mild symptoms in patients.

This came in addition to lower chances of Iranian oil exports making a return after the indirect US-Iranian talks on reviving the 2015 Iran nuclear deal reached a dead-end.

European officials on Friday expressed dismay at sweeping demands by Iran's new government, but talks are expected to resume by the middle of this week.