Oil Set to Witness Best Month since Supply Woes of Feb 2021 with an above 1% Hike

Oil surged by over 1% on Monday, closely approaching the seven-year highs from its previous session. This development benefits further from the continued geopolitical tensions in the Middle East and Eastern Europe which could spur its biggest monthly gain since February, 2021.

Brent crude soared by 1.2% at $91.10 per barrel at 0325 GMT. The U.S. West Texas Intermediate (WTI) inched up by 1.2% to $87.89 a barrel. The benchmarks are poised to hit 17% gains this month after attaining their highest ranks since October 2014 at $91.70 and $88.84, respectively.

According to Toshitaka Tazawa, a Fujitomi Securities Co Ltd. analyst, "Underlying anxiety about global supply shortages, coupled with ongoing geopolitical risks, have caused the market to start the week on a strong note." He also added, "With an expectation that OPEC+ will keep the existing policy of gradual increase of production, oil prices will likely stay on a bullish sentiment this week."

The OPEC+ is set to adhere to its original plan of proposed production hikes to reach its output goals for March, while attempting to keep up with global demand.