Oil Price Rises Above $57, Highest In 12 Months

Whatsapp News

The international benchmark, Brent crude, rose more two per cent on Tuesday, hitting a 12-month after major crude producers showed they were reining in output roughly in line their commitments.

Brent crude, against which ’s is priced, was up $1.27, or 2.3 per cent, at $57.62 a barrel by 1320 GMT, its third straight day of gains and the highest levels since February last year, according to Reuters.

The benchmark, West Texas Intermediate, gained $1.2, or 2.2 per cent, to $54.75, a level last seen in early March 2020.

Crude by the of the Petroleum Exporting Countries rose for a seventh month in January but the increase was smaller expected, a Reuters survey found.

Also, voluntary cuts of one million barrels per day by OPEC’s de facto leader, Saudi Arabia, are to be implemented from the beginning of February through March.

OPEC and its allies (OPEC+) endeavouring to keep global below demand, we expect petroleum inventories to keep falling,” UBS said in a note.

inventories starting to drop in 2H20, the structure of the futures curve has shifted to become downward sloped. This is attracting investors.”

The investment bank forecast Brent would reach $63 per barrel by the half of this year and $65 by the first quarter of 2022. Goldman Sacks said expected the benchmark to reach $65 a barrel by July.

In another , ExxonMobil on Tuesday posted its first annual loss as a company as the pandemic hammered energy prices and reduced the value of its shale properties by more $20bn in the fourth quarter.

The company a net annual loss of $22.44bn for 2020, compared with a full-year profit of $14.34bn in 2019.