Oil climbs to 13-month highs on output cuts, demand recovery hopes


Oil prices edged up to their highest in 13 months on February 9, as supply cuts by major producers and optimism over fuel demand recovery support energy markets.

Brent crude futures for April gained 48 cents, or 0.8 percent, to USD 61.04 a barrel by 0443 GMT. U.S. West Texas Intermediate crude (WTI) for March was at USD 58.42 a barrel, up 45 cents, or 0.8 percent.

Both Brent and WTI are at their highest since January 2020. Front-month prices for both contracts are up for the seventh session on Tuesday, the longest win streak since January 2019.

Additional supply reductions by top exporter Saudi Arabia in February and March, on top of cuts by producers in the Organization of the Petroleum Exporting Countries and their allies, are tightening supplies and balancing global markets.

Investors are also pinning hopes on oil demand recovery when COVID-19 vaccines take effect. A weak dollar has also helped shore up prices of commodities.

He cautioned, however, that both Brent and WTI are in overbought territory on technical charts.

Investors are looking ahead to the U.S. weekly oil inventories data due later in the week.

U.S. crude and gasoline stockpiles likely rose last week, while distillate stocks were seen down, a preliminary Reuters poll showed on February 9.