Oil prices on Monday were revived by falling stocks and hopes for a rapid global economic recovery. However, slowing vaccination practices and renewed travel restrictions limited earnings.
Brent crude was up 79 cents, or 1.4%, at $55.83 a barrel by 1215 GMT. WTI crude gained 61 cents, or 1.2%, to $52.81.
Both benchmarks gained nearly 8% in January.
The prospect of further declines in oil stocks in the coming weeks as a result of low production in Saudi Arabia also helps crude oil prices.
Some analysts expect Brent to reach $ 60-65 by mid-year. In the first half of 2021, it is estimated that there will be a 900,000 barrels (bpd) daily oil market deficit.
OPEC oil production increased for the seventh month in January. Although OPEC and its allies agreed to further ease supply limits, output growth was lower than expected. The agreed implementation of OPEC production cuts continues in a disciplined manner, bringing stability to oil prices.
According to sources, Russian oil and gas condensate production increased in January, in line with Moscow’s agreement with OPEC on production cuts.
US oil and gas drillers are preparing for a rebound in demand. The number of drilling rigs increased for the sixth consecutive month in January as higher prices made the wells profitable again.
US production data from the Energy Information Administration showed that production rose to over 11 million barrels in November, exceeding this figure for the first time since April.
Oil also found some support from the weakness of the dollar, as crude oil prices tended to move in the opposite direction to the US currency.