On Tuesday, both oil indicative contracts held their seventh consecutive earnings session, reaching their highest levels since the end of January 2020. Optimism about the supply cuts imposed by major producers and the recovery in fuel demand continue to support energy markets.
Brent crude futures for April gained 41 cents, or 0.7%, to $60.97 a barrel by 1000 GMT.
West Texas Intermediate (WTI) crude for March was at $58.25 a barrel, up 28 cents, or 0.5%.
The recent price increase is based on investor optimism and financial market factors such as the weakening US dollar, and oil prices are expected to improve.
The dollar lost around 0.4% against most currencies, making dollar-denominated commodities more attractive than other currencies.
The largest exporter, Saudi Arabia, voluntarily squeezes supply in February and March in addition to cuts agreed by OPEC and its allies, leading to supply deficit forecasts this year.
In addition, a Libyan oil source said Monday that Libyan oil production fell from 1.3 million barrels at the end of last year to 1.04 million barrels per day due to the ongoing strike by the Oil Facilities Guards.
Signaling that Iranian oil will not return to the market quickly, Tehran and Washington seem to be deadlocked in resolving sanctions against OPEC member Iran.
Investors are encouraged as COVID-19 vaccines are coming into effect and the weak dollar raises commodity prices.
Investors are also awaiting US weekly oil stocks data to be released later Tuesday. U.S. crude and gasoline inventories likely rose last week, while distillate stocks fell.
