money and business
Reuters Christian Hartmann
Oil prices recorded their highest level in 11 months, near $ 57 a barrel, with the support of Saudi plans to restrict supplies, which overshadowed concern about the possibility of a decline in demand due to the increase in Corona injuries.
Brent crude contracts ended the trading session on Tuesday, up 92 cents, or 1.65%, to settle at $ 56.58 a barrel, after touching its highest level since last February at $ 56.75.
US West Texas Intermediate crude futures rose 96 cents, or 1.84%, to settle at $ 53.21 a barrel.
Saudi Arabia plans to make an additional reduction in its oil production by one million barrels per day in February and March to curb stocks, as part of the “OPEC +” agreement in which most producers will keep their production stable in February.
The US Energy Information Administration said in a report, on Tuesday, that crude oil production in the United States is also expected to drop 190,000 barrels per day in 2021 to 11.1 million barrels per day, a smaller drop than its previous estimate, which expected a drop of 240,000 barrels per day. .
And oil was supported by expectations of another decline in US crude stocks. Analysts expect that US oil inventories fell 2.7 million barrels last week, which would be the fifth consecutive weekly decline.
The American Petroleum Institute will later issue its report on oil stocks in the United States.
The market also received support from a possible increase in the economic stimulus package in the United States, as US President-elect Joe Biden promised to pump trillions of dollars in additional spending to mitigate the repercussions of the Corona pandemic.
But oil price gains are constrained by anxiety about demand as coronavirus infections increase around the world.