LONDON (UK) – Supported by hopes of a quicker economic revival and supply curbs by OPEC and its allies, Oil saw it’s highest growth in a year at $59 a barrel.
New orders for US-made goods rose more than expected in December, pointing to continued strength in manufacturing.
Brent crude was up 69 cents, or 1.2%, to $59.53 by 0910 GMT, after hitting $59.67, its highest since Feb. 20, 2020. U.S. crude was up 66 cents, or 1.2%, to $56.89, after reaching $56.95, its highest since Jan. 22, 2020.
“The conditions still remain supportive for oil markets,” said Jeffrey Halley, analyst at brokerage OANDA. “Oil should find plenty of willing buyers on any material dip.”
Brent is on track to rise more than 6% this week.
Oil also gained support from supply curbs by major producers. OPEC and its allies stuck to their supply-tightening policy at a meeting on Wednesday. Record OPEC+ cuts have helped lift prices from historic lows last year.
“OPEC+ discipline has been a real positive,” said Michael McCarthy, chief market strategist at CMC Markets.
The rollout of COVID-19 vaccines is fuelling hopes of lockdowns being eased and people moving around more, boosting fuel demand.