The oil market is off to a bullish start as it recorded an oil price increase during the year’s first trading session. Brent crude climbed $1.20. It registered a 1.5 percent surge, settling at $78.24 a barrel as of 04:38 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude rose by $1 or 1.4 percent to $72.66 a barrel.
Major drivers of oil price increase
Two factors fueled this surge in oil prices. First is the potential supply disruptions in the Middle East following a naval incident in the Red Sea. The other is a strong holiday demand and economic upswing in China. The country is the world’s leading importer of crude oil.
Wildcat Petroleum plc (LON:WCAT) was incorporated in early 2020, with plans to work and invest in the upstream sector of the petroleum industry – namely exploration, appraisal, development and production of oil and gas.