Oil jumps 2%, hits highest in a year as producers limit supply
Oil prices rose 2% on Tuesday, reaching their highest in 12 months after major producers showed they were reining in output roughly in line with commitments.
The global and U.S. crude benchmarks rallied as optimism about more U.S. economic stimulus added to bullishness from OPEC production levels, which rose less than expected in January.
Brent crude settled up $1.11, or 2%, at $57.46 a barrel, its third straight day of gains. During the session, it touched $58.05, the highest since January last year.
U.S. oil gained $1.21, or 2.3%, to close at $54.76, after hitting a session high of $55.26, the highest in a year.
Both contracts traded higher after the settlement, after the American Petroleum Institute, a trade group, said oil and fuel inventories were lower on the week.
Crude output from the Organization of the Petroleum Exporting Countries rose in January for a seventh month but the increase was smaller than expected, a Reuters survey found.
The rally picked up steam as the U.S. Congress looked ready to adopt an economic stimulus package, and as cold U.S. weather boosted heating oil demand.
The Democratic-led U.S. House of Representatives prepared to take the first step forward on President Joe Biden’s $1.9 trillion COVID-19 relief package.
A cold snap and heavy snow in the U.S. Northeast drove the margin for heating oil to an 8-month high of $15.84, lending further support to crude.
Exxon investors, unhappy after results, push clean energy
Dozens of unhappy investors told Exxon Mobil Corp. on Tuesday to move more quickly and forcefully to improve returns and focus on clean energy, hours after the oil company reported an historic annual loss and said it added a new director to its board.
Exxon reported a net annual loss of $22.4 billion for 2020 and named Tan Sri Wan Zulkiflee Wan Ariffin, the former head of Malaysia’s state oil company, as an independent director.
Reference: CNBC
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