Oil hit its highest level in a year above $59 a barrel on Friday supported by hopes of a quicker economic revival and supply curbs by OPEC and its
For all the latest headlines follow our Google News channel online or via the app
New orders for US-made goods rose more than expected in December, pointing to continued strength in manufacturing. The US Congress is also moving ahead on President Joe Biden’s COVID-19 relief plan.
World has not yet reached peak oil demand despite COVID-19 dip: IEA chief Fatih Birol
Brent crude was up 69 cents, or 1.2 percent, to $59.53 by 0910 GMT, after hitting $59.67, its highest since February 20, 2020. US crude was up 66 cents, or 1.2 percent, to $56.89, after reaching $56.95, its highest since January 22, 2020.
“The conditions still remain supportive for oil markets,” said Jeffrey Halley, analyst at brokerage OANDA. “Oil should find plenty of willing buyers on any material dip.”
Brent is on track to rise more than 6 percent this week.
The rollout of COVID-19 vaccines is fueling hopes of lockdowns being eased and people moving around more, boosting fuel demand.
Oil also gained support from supply curbs by major producers. OPEC and its allies stuck to their supply-tightening policy at a meeting on Wednesday. Record OPEC+ cuts have helped lift prices from historic lows last year.
“OPEC+ discipline has been a real positive,” said Michael McCarthy, chief market strategist at CMC Markets.
Further boosting the market, a weekly supply report showed a drop in US crude inventories to their lowest level since March, suggesting output cuts by OPEC+ producers to avert a stock build-up are working.
- Anglo-Dutch oil giant Shell’s profit slumps in 2020 as coronavirus pandemic bites
- Oil prices at one-year highs after stocks draw, supply shortfall forecast
- Despite revising down 2021 demand growth, OPEC+ sees oil market deficit
- Crude oil prices rise 2 pct, hit near 12-month highs as producers restrain output
- Oil giant BP plunges into $20.3 bn annual loss due to coronavirus
- Oil prices gain towards $60 as inventories fall and demand picks up
- Oil prices up but remains rangebound as OPEC cuts offset coronavirus fears
- Iran oil exports rise despite sanctions, end of Trump era may change buyer behavior
- World has not yet reached peak oil demand despite COVID-19 dip: IEA chief Fatih Birol