SULAIMANI (ESTA) — Oil prices edged higher on Tuesday as supply cuts by major producers and optimism over fuel demand recovery support energy markets.
Brent crude futures gained 47 cents to $61.03 a barrel by 0557 GMT. U.S. West Texas Intermediate (WTI) was up 45 cents at $58.42 a barrel.
Both benchmarks are at their highest since January 2020.
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, Reuters reported.
Investors are also pinning hopes on oil demand recovery when coronavirus vaccines take effect. A weak dollar has also helped shored up prices of commodities, according to Reuters.
“Progress on U.S. stimulus and optimism around the roll-out and effect of vaccines across the remainder of 2021 and a slightly weaker USD help the view [for a recovery] albeit there was mixed news on the impact of the current vaccines formulated on the emerging South African variant,” Stephen Innes, chief global markets strategist at brokerage Axi.
Investors are looking ahead to the U.S. weekly oil inventories data due later in the week.
