MELBOURNE (Reuters) – Friday’s oil prices climbed to their highest levels in a year, extending a series of strong gains this week, fueled by producers’ continued commitment to crude supply and positive signs of economic growth in the United States to hold back.
US West Texas Intermediate (WTI) crude futures jumped 51 cents, or 0.9%, to $ 56.73 a barrel before 0210 GMT, after touching a high of $ 56.75, the highest since January 22 last year. The benchmark contract is on track for a weekly gain of nearly 9%, which would be the biggest weekly gain since October
Brent crude futures climbed 45 cents, or 0.8%, to $ 59.28 a barrel, after hitting a high of $ 59.32, the highest level since February 20 last year. Brent is on track to rise 6% this week.
Markets were stimulated by stronger-than-expected orders for U.S. goods in December, signaling strength in manufacturing, and he hopes to quickly get approval from lawyers for a $ 1.9 trillion coronavirus relief plan that has been announced. proposed by President Joe Biden.
“OPEC + control has been very optimistic,” said Michael McCarthy, chief market strategist at CMC Markets, referring to the Organization of Petroleum Exporting Countries and Russian-led allies, known as OPEC +. The alliance reaffirmed this week its support for deep supply cuts that have helped bring down global crude stocks.
“And then when we have signs of better economic growth, it’s then and there (for prices),” McCarthy said.
Chinese demand for crude oil is also helping to support the market, as evidenced by industry monitoring two North Sea crude oil tankers heading for China for March 22 and March 24, said Stephen Innes, Axi’s global market strategist.
“When demand drives commodity prices, it has a more bullish effect and leaves a more lasting reflection on price action,” Innes said in a note.
Reciting with Sonali Paul; Edited by Kenneth Maxwell