Oil jumps to an 11-month high and Brent near $ 57
Oil hit its highest level in 11 months, as Brent approaches $ 57 on Tuesday, with declining supply and expectations of lower US stocks, offsetting fears of a rise in cases of Coronavirus worldwide.
Saudi Arabia intends to cut production by an additional 1 million barrels per day in February and March to halt the increase in stocks, and the latest reports of US supplies are expected to show a decline in crude stocks for the fifth week in a row.
Brent crude was up 78 cents, or 1.41 percent, to $ 56.45 a barrel by 11:03 GMT, and West Texas Intermediate was also up 70 cents, or 1.30%, to $ 52.94.
The Saudi cut is part of an OPEC-led deal in which most producers will keep production stable in February. Record cuts by OPEC and its allies in 2020 helped oil recover from its historic lows in April.
Oil also rose as US crude inventories were expected to drop. Analysts are forecasting Crude Oil Inventories to drop 2.7 million barrels for the fifth straight week of declines.
The possibility of further economic stimulus in the United States provided further support. President-elect Joe Biden, who takes office on January 20, has promised to spend additional “trillions” on epidemic relief. Source