A woman with a face mask walks on the ocean front while oil tankers are seen anchored off the coast of Long Beach, California, after sunset on April 25, 2020.
Apu Gomes | AFP | Getty Images
Oil prices rose on Tuesday at a 13-month high 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 around the spread and impact of vaccines over the rest of 2021 and a slightly weaker USD are helping the outlook (to get over it) despite mixed news about the impact of vaccines created on what appears. South Africa’s Transformer, ”Stephen Innes, Axi’s chief global marketing strategy, broke down.
He warned, however, that both Brent and WTI are in an oversized area on technical records.
“While I remain 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 uncertainty that exists. close to a term that still exists for oil, “he said.