Oil prices edged up on to their highest in 13 months as supply cuts by major producers and optimism over fuel need data recovery support energy markets.
Brent crude futures for gained 29 cents, or 0.5%, to $60.85 a barrel by 0246 GMT. U.S. West Texas Intermediate crude (WTI) for March is at $58.25 a barrel, up 28 cents, or 0.5%.
Both Brent and WTI are at their highest since 2020. Front-month charges for both contracts are up for the session that is seventh Tuesday, the longest win streak since January 2019.
Extra supply reductions by top exporter Saudi Arabia in February and March, on top of cuts by manufacturers within the Organization for the Petroleum Exporting nations and their allies, are tightening supplies and balancing markets that are global.
Investors are also hopes that are pinning oil need recovery when COVID-19 vaccines take impact. A dollar that is weak also helped shored up prices of commodities.
“Progress on U.S. stimulus and optimism around the roll-out and aftereffect of vaccines over the remainder of 2021 and a slightly weaker USD assist the view (for a recovery) albeit there clearly was news that is blended the impact of the present vaccines formulated regarding the appearing South African variation,” Stephen Innes, chief global markets strategist at brokerage Axi.
He cautioned, nonetheless, that both Brent and WTI are in overbought territory on technical maps. Oil prices edged up on to their highest in 13 months.
“one can comprehend a willingness to appear through some of the near-term uncertainty that continues to be for oil,” he said while we remain a bit cautious at current levels, the medium and longer-term outlook for need is healthy, and.