Concurrently, signs of progress in the COVID-19 vaccine rollout in the United States gave further support. Brent oil was higher $1.28, or 2%, to $63.98 a barrel by 1050 GMT. U.S. West Texas Intermediate (WTI) crude climbed $1.17, or 2%, to $60.92 a barrel.
The fundamentals of the oil market imply further power as oil demand increases with the recovery, and recreation and travel activity can bounce, stated Norbert Rücker, an analyst at Swiss bank Julius Baer.
He replied that we see oil prices driving temporarily over $70 by mid-year.
Oil prices surged after Reuters reported based on three sources: the Organization of the Petroleum Exporting Countries, Russia, and their partners, a group identified as OPEC+, are contemplating rolling over production cuts from March into April rather than increasing output.
The group convenes on Thursday. The market had generally been anticipating OPEC+ to reduce oil production cuts.
Kuwaiti Oil Minister Mohammad Al-Fares said the oil market was being encouraged by optimism regarding vaccinations.
U.S. President Joe Biden said the United States would have enough coronavirus vaccines for every American adult by the end of May after Merck & Co allowed to make rival Johnson & Johnson’s inoculation.
Biden stated he wished that the United States would be “back to normal” at this time next year and possibly sooner.
The American Petroleum Institute (API) industry group stated U.S. crude oil stocks developed by 7.4 million barrels in the week to Feb. 26, in severe opposition to analysts’ assessments for a draw of 928,000 barrels.
Nevertheless, that build happened while the U.S. refining capacity was closed throughout the survey week because of Texas’s cool weather. Refinery runs dropped by 1.75 million BPD, API data presented.