TOKYO (Reuters) -Fridges on Friday hit 11-month highs and were on track for a strong weekly gain as a rally in global equities fueled risk appetite and dampened bullish sentiment after Saudi Arabia’s promise to cut output.
Brent crude climbed 39 cents, or 0.7%, to $ 54.77 a barrel before 0757 GMT, after touching $ 54.92, the highest level since Feb. 26.
US West Texas Intermediate (WTI) gained 33 cents, or 0.7%, to $ 51.16. The contract was also touching the high of February 25 at $ 51.34 earlier in the session.
Both criteria are on track for weekly benefits greater than 5%.
“Saudi’s decision to make voluntary cuts to its product continued to support,” said Hiroyuki Kikukawa, general research manager at Nissan Securities.
“Strong global averages, backed by excess liquidity, encouraged new oil purchases,” he said, adding that oil and stock markets would soon see a correction as their rallies did not reflect fuel demand and the Scottish economy. universe.
Earlier this week, Saudi Arabia, the world’s largest oil exporter, said it would cut production by an additional 1 million barrels per day (bpd) in February and March.
On Thursday, seven North Sea crude shipments were bought and sold in the Platts-run trading window, the highest level trade sources said could reveal tighter supply after the surprising cut.
UBS raised the forecast for Brent to $ 60 per barrel by mid-year, following Saudi Arabia’s unilateral cut and the expectation of a resurgence in demand in the second quarter as the spread of coronavirus vaccines should revive travel.
Asian shares rose to record highs on Friday and Japan’s Nikkei hit a three-year high as investors watched beyond rising coronavirus cases and political unrest in the United States to a promising economic recovery later in the year.
“Oil markets are expected to remain in a bullish tone towards February behind Saudi’s surprising promise to cut yields,” said Kazuhiko Saito, chief analyst at commodity broker Fujitomi Co.
“However, concerns about slower demand for gasoline and other fuels in the United States and other parts of the world due to wider restrictions on the spread of COVID-19 pandemics could hamper benefits. . ”
The pandemic reported the highest death toll in the U.S. yet, killing more than 4,000 people in a single day, while China reported the biggest rise in daily cases in more than five months and two Japan could extend a state of emergency beyond the greater Tokyo area.
Reporting by Yuka Obayashi; Edited by Kenneth Maxwell, Kim Coghill and Barbara Lewis