SINGAPORE: Oil costs edged as much as their highest in 13 months on Tuesday as provide cuts by main producers and optimism over gasoline demand restoration assist power markets.
Brent crude futures for April gained 48 cents, or 0.8%, to $61.04 a barrel by 0443 GMT. U.S. West Texas Intermediate crude (WTI) for March was at $58.42 a barrel, up 45 cents, or 0.8%.
Each Brent and WTI are at their highest since January 2020. Entrance-month costs for each contracts are up for the seventh session on Tuesday, the longest win streak since January 2019.
Extra provide reductions by prime exporter Saudi Arabia in February and March, on prime of cuts by producers within the Group of the Petroleum Exporting Nations and their allies, are tightening provides and balancing international markets.
Traders are additionally pinning hopes on oil demand restoration when COVID-19 vaccines take impact. A weak greenback has additionally helped shored up costs of commodities.
“Progress on U.S. stimulus and optimism across the roll-out and impact of vaccines throughout the rest of 2021 and a barely weaker USD assist the view (for a restoration) albeit there was blended information on the influence of the present vaccines formulated on the rising South African variant,” Stephen Innes, chief international markets strategist at brokerage Axi.
He cautioned, nonetheless, that each Brent and WTI are in overbought territory on technical charts.
“Whereas I stay a bit cautious at present ranges, the medium and longer-term outlook for demand is wholesome, and one can perceive a willingness to look via a few of the near-term uncertainty that continues to be for oil,” he stated.
Traders are waiting for the U.S. weekly oil inventories knowledge due later within the week.
U.S. crude and gasoline stockpiles seemingly rose final week, whereas distillate shares had been seen down, a preliminary Reuters ballot confirmed on Monday. [EIA/S]
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