Major producers roughly comply with their production throttling commitments. As a result, oil increased by 2%, reaching a 12-month high.
OPEC production levels increased less than expected in January. Optimism about the US economic incentive makes faces laugh. Global oil indicators are rising.
Brent crude oil closed with at $ 57.46 a barrel, an increase of $ 1.11, or 2%. During the session, it rose to $ 58.05, its highest level since January last year. It was the third day in a row.
WTI oil reached highest at $ 55.26 during ession and then closed at $ 54.76, up $ 21 or 2.3%.
The American Petroleum Institute stated that oil and fuel stocks decreased during the week. US distillate fuel stocks, including heating fuel, fell in the last week, according to API data. In addition, gasoline and crude inventories fell. As a result of all this, both benchmarks rose.
Official figures are released on Wednesday.
According to surveys, the Organization of Petroleum Exporting Countries crude oil production increased in January as the seventh month. The increase is less than expected and positively contributes to the market.
Saudi Arabia will perform a voluntary cut of 1 million barrels per day from early February to March.
In line with the OPEC + pact, Russian production increased in January, while oil volumes in Kazakhstan decreased for a month.
The U.S. Congress seems close to accepting the $ 1.9 trillion COVID-19 aid package. In the US, cold weather is increasing the demand for heating fuel and the rally has gained momentum. The heating oil margin climbed to an 8-month high of $ 15.84 due to cold weather in the northeast of the USA. All this provides more support for crude oil.