Oil prices soared by more than 1% on Tuesday after major crude oil producers showed they were roughly curtailing production according to their commitments, and finally increased gains in the market by balancing the weak demand caused by the coronavirus outbreak.
Brent crude was up 77 cents, or 1.4%, at $57.12 a barrel by 0950 GMT, its third straight day of gains. WTI oil gained 82 cents, or 1.5%, to $54.37.
Both contracts rose more than 2% in the previous session.
According to surveys, OPEC crude oil production rose as seventh month in January, but the increase is said to be less than expected.
OPEC’in fiili lideri Suudi Arabistan tarafından günlük 1 milyon varillik gönüllü kesintilerin Mart ayının başından itibaren uygulanması planlanıyor. OPEC ve müttefikleri (OPEC +) küresel petrol üretimini talebin altında tutmaya çalışırken, petrol stoklarının düşmeye devam etmesini bekleniyor.
With the oil inventories starting to decline in 2020, the structure of the futures curve has sloped downward. This situation attracts the appetite of investors.
Roughly speaking, there are predictions that Brent will reach $ 63 a barrel in the second half of this year and $ 65 in the first quarter of 2022.
Russian production increased in January, but the oil volume in Kazakhstan fell for a month in line with the agreement to reduce production.
An energy major stated that it is making a difficult start to 2021 due to reduced product demand, adding that January retail sales volume decreased by about 20% year-on-year, compared to an 11% decline in the fourth quarter. He said oil demand is expected to recover in 2021 and global stocks are expected to return to their five-year average by mid-year.
The severe snowstorm that helps boost prices affects a large region of the northeast of the United States, increasing demand for fuel heating.