Florence Tan

SINGAPORE (Reuters – Oil prices rose over $1 a bar Monday, as Saudi Arabia, the world’s largest exporter of crude oil, raised its prices for products sold to Asia. The increase came after indirect U.S./Iran negotiations on a new nuclear agreement appeared to have fallen apart.

The February futures gained 1.69, or 2.4% at $71.57 a barrel by 0033 GMT. U.S. West Texas Intermediate crude was $67.92 a barrel in January, which is an increase of $1.66 and 2.5%.

Saudi Arabia increased January’s official selling price for crude oil grades exported to Asia and America by as much as 80 cents over the month before.

Despite a decision made last week by the Organization of the Petroleum Exporting Countries, their allies, including Russia to keep increasing supply by 400,000 barrels daily in January, the price rises were still implemented.

Indirect U.S.-Irani talks about securing the 2015 Iran Nuclear Deal have ended last week. This has also helped to buoy prices. European officials expressed dismay Friday over the sweeping demands of Iran’s hardline government. They are due to resume the talks in mid-week.

The benchmarks rose after they fell last week. They were down for the sixth consecutive week.

The International Monetary Fund’s head stated that due to the new model, the global lender will probably lower its estimate of global economic growth. This is yet another indication of the chaos caused by the pandemic.

Omicron was present in approximately one-third U.S. States as of Sunday.