Oil prices reached an 11-month high and are on a path of weekly gains, supported by Saudi Arabia’s pledge to cut production and strong gains in major stock markets.
Brent crude rose $ 1.04, or 1.9 percent, to $ 55.42 a barrel by 1633 GMT, the highest level since late February, and US West Texas Intermediate crude rose 82 cents, or 1.6 percent, to $ 51.65, which is also the highest level. Since late February.
The two benchmarks are on track for gains of about 6 percent this week.
“People are realizing that the market is more restrictive than it was at some time,” said Phil Flynn, a senior analyst with Price Futures Group in Chicago.
Saudi Arabia pledged this week to voluntarily cut oil production by one million barrels per day in February and March, at a time when most OPEC + producers are keeping their production steady, coinciding with new lockdown measures.
On Thursday, seven shipments of North Sea crude were bought and sold on the trade platform operated by Platts, a record amount that trade sources say may indicate lower supplies after the Saudi cut.
Meanwhile, global stocks rose, as Japan’s Nikkei index reached a three-decade high as investors focused on hopes for an economic recovery later in the year.
Source: Reuters
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