Oil prices rose nearly 9 percent on Monday after an attack on two oil facilities in Saudi Arabia halted production of 5.7 million barrels of crude equivalent to five percent of global supplies.
As of 07:57 GMT, Brent crude futures climbed to $65.70 a barrel after opening at $68.42 a barrel. The highest level was $71.95 a barrel, which is the highest level since January 1991.
Prices opened on an upside gap, but it is currently trading lower around $65.76 a barrel.
West Texas Intermediate (WTI) crude futures jumped as much as 15.5 percent to $63.34 a barrel, the biggest percentage gain in a day since June 22, 1998.
Saudi Arabia has announced that it will recover about one-third of its suspended production capacity by today, as the United States considers using part of its emergency reserves,
Saudi Aramco said the attacks reduced oil production by about 5.7 million barrels per day, but the giant company did not provide a specific period for the full resumption of production.
U.S President Donald Trump said he has agreed to release oil from the U.S. Strategic Oil Reserve (SPR) if necessary, in a specified amount. He also added that the United States is "locked and loaded" to respond to a possible attack on Saudi oil facilities.
South Korea said that it would consider releasing oil from its strategic oil reserves if conditions surrounding crude oil imports increased in the wake of Saturday's attack on Saudi oil facilities.
Oil prices posted losses of nearly 3 percent in last week's trading, as global crude demand slowed and the Energy Agency predicted a surplus in the markets.
The U.S dollar index, which tracks the green currency’s performance
versus a basket of six major currencies, recovered after two consecutive days
of losses to record a 0.02 percent increase at 97.85.