Oil prices have risen to their highest levels in 13 months, supported by major producers cutting supplies and optimism about a recovery in fuel demand.
The oil markets received additional support from a decline in the dollar to its lowest level in a week, as a weaker dollar increases the attractiveness of dollar-denominated commodities for holders of other currencies. Brent contracts settled at $61.09 per barrel, up 0.88%, equivalent to 53 cents. U.S. West Texas Intermediate crude contracts rose by 0.67%, equivalent to 39 cents, to settle at $58.36 per barrel. Both Brent and U.S. crude reached their highest levels since January 2020 earlier in the session. The U.S. Energy Information Administration stated that the government has lowered its crude oil production forecast for the United States in 2021 to 11.02 million barrels per day from 11.1 million barrels per day in its previous forecast. U.S. crude inventories fell to their lowest level since March, before the COVID-19 pandemic caused the oil markets to collapse. According to Reuters, analysts expect an increase of one million barrels in U.S. inventories last week. The market is awaiting the latest data on oil inventories in the United States, which will be released by the American Petroleum Institute later.
