Prices rose consistent with broader monetary markets with Brent crude futures reaching $53.33 a barrel, the very best since March 2020. U.S. West Texas Intermediate (WTI) crude touched $49.83 a barrel, the very best since February 2020.
March Brent crude futures had been at $52.41 a barrel, up 61 cents, or 1.2%, by 0944 GMT and February WTI crude futures rose 35 cents, or 0.7%, to $48.87 a barrel.
“Price action today suggests that the market is assuming that OPEC+ keeps the level of cuts unchanged for the upcoming month,” mentioned ING commodities strategist Warren Patterson.
OPEC and allies, a gaggle often called OPEC+, will meet on Monday. Most OPEC+ consultants voiced opposition to growing oil output from February after they met on Sunday, three OPEC+ sources advised Reuters on Monday.
In December, OPEC+ determined to extend manufacturing by 0.5 million barrels per day (bpd) from January as a part of a 2 million bpd gradual rise this 12 months however some members have questioned the necessity for an extra increase because of spreading coronavirus infections.
“The begin of the brand new 12 months is presenting challenges to the OPEC+ group, because the stability of dangers to oil demand restoration has modified,” BNP Paribas analyst Harry Tchilinguirian mentioned.
“The OPEC+ producer group may have to re-schedule and delay further tapering of voluntary supply cuts in view of latest COVID developments,” he added.
Mohammad Barkindo, secretary basic of OPEC, mentioned on Sunday that the group noticed loads of draw back demand dangers within the first half of 2021.
Kuwait’s oil minister additionally mentioned on Monday that he anticipated a gradual restoration in oil demand, notably within the second half of 2021, as many international locations around the globe begin to distribute coronavirus vaccines.
Britain started vaccinating its inhabitants with the COVID-19 shot developed by Oxford University and AstraZeneca on Monday.
Weaker greenback and powerful manufacturing actions in Asia additionally supported oil costs.