Oil hits highest level since February ahead of inventory data
Oil hit an 11-month high towards $57 a barrel on Tuesday as tighter supply and expectations of a drop in U.S. inventories offset concerns over climbing coronavirus cases globally.
Saudi Arabia plans to cut output by an extra 1 million barrels per day (bpd) in February and March to stop inventories from building up. The latest U.S. supply reports are expected to show crude stocks fell for a fifth straight week.
Brent crude was 80 cents, or 1.4%, higher at $56.44 a barrel and earlier hit $56.75, the highest since last February. U.S. West Texas Intermediate (WTI) settled 1.8%, or 96 cents, higher at $53.21 per barrel.
The Saudi cut is part of an OPEC-led deal in which most producers will hold output steady in February. Record cuts by OPEC and its allies in 2020 helped oil recover from historic lows in April. Some analysts see further gains as likely.
Brent at 11-month high, yields end flat
The 10-year U.S. yield touched its highest since March but tightened to near flat on the day after a Treasury auction was well bid. The yield had risen sharply this year on expectations of a massive stimulus package from the incoming Democratic administration.
Benchmark U.S. government 10-year debt last rose 1/32 in price to yield 1.1325%, from 1.134% late on Monday. The yield hit 1.187% earlier in the session.
Reference: CNBC, Reuters
Thai
Eng