SINGAPORE (Reuters) – Oil prices for the fourth straight session on Thursday rose to the highest levels in more than 13 months, backed by currency rebate policies and lower crude production in the United States.
Brent crude futures for April gained 19 cents, 0.3%, to $ 67.23 a barrel by 0400 GMT, while US West Texas intermediate crude for April was at $ 63.30 per barrel, up 8 cents, 0.1 %.
Both contracts peaked since January 2020 earlier in the session with Brent at $ 67.44 and WTI at $ 63.67.
Confirmation from the U.S. Federal Reserve that interest rates would remain low for some time would increase investor risk appetite and global financial markets.
“Comments from Fed Chairman Jerome Powell earlier in the week may relate to the need for an appropriate monetary policy, but sentiment in the oil market has also become more bullish, with expectations to a tighter oil balance, ”ING analysts said in a note.
A rare winter storm in Texas has caused U.S. crude output to fall more than 10%, or 1 million barrels per day (bpd) last week, the Energy Information Administration said. [EIA/S]
Fuel supply in the world ‘s largest oil consumer could also tighten as brewing raw material volumes fell to their lowest level since September 2008.
The Organization of Petroleum Exporting Countries and their allies, including Russia, an organization called OPEC +, are expected to meet on March 4th.
The group will discuss a slight easing of oil supply loops from April due to rising prices, OPEC + sources said, although some are proposing to remain stable for now as there is a risk of lumps new barriers in the battle against the pandemic.
Further voluntary cuts by Saudi Arabia in February and March have tightened global supply and boosted prices.
(This story corrects headline and lead paragraph to 13-month highs, not 11 months)
Reciting with Florence Tan; Edited by Simon Cameron-Moore