SINGAPORE (Reuters) – Oil prices rose on Tuesday to their highest level in 13 months as supply cuts by major producers and hopes of a recovery in fuel demand support energy markets.
Brent crude futures for April gained 29 cents, or 0.5%, to $ 60.85 a barrel before 0246 GMT. U.S. West Texas (WTI) intermediate crude for March was at $ 58.25 a barrel, up 28 cents, or 0.5%.
Both Brent and WTI are at their highest level since January 2020. Front month prices for both contracts are up for Tuesday’s seventh session, the longest winning streak since January 2019.
Further supply cuts by Saudi Arabia’s top exporter in February and March, as well as cuts by representatives of the Organization of Petroleum Exporting Countries and their allies, are tightening commodities and balancing global markets.
Investors are also hoping to find a boost in oil demand when the COVID-19 vaccines come into effect. A weak dollar has also helped raise commodity prices.
“Improvements in US stimulus and optimism in the spread and impact of vaccines over the rest of 2021 and a slightly weaker USD help the idea (for overcoming it) despite mixed news about the impact of routine vaccines formed on the features of the South African Transformer, ”Stephen Innes, Axi’s leading global markets strategy.
He warned, however, that both Brent and WTI are in an oversized area on technical records.
“While I have remained a little cautious at the normal levels, the medium and long term outlook for demand is healthy, and one will understand a willingness to look through some of the near uncertainty. There is still time for oil, ”he said.
Reciting with Florence Tan; Edited by Tom Hogue