© Reuters. FILE PHOTO: Pump jacks operate at sunset in an oil field in Midland

By Alex Lawler

LONDON (Reuters) – Oil hit its highest level in a year above $59 a barrel on Friday supported by hopes of a quicker economic revival and supply curbs by OPEC and its allies.

New orders for U.S.-made goods rose more than expected in December, pointing to continued strength in manufacturing. The U.S. Congress is also moving ahead on President Joe Biden’s COVID-19 relief plan.

was up 69 cents, or 1.2%, to $59.53 by 0910 GMT, after hitting $59.67, its highest since Feb. 20, 2020. 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.

The rollout of COVID-19 vaccines is fuelling hopes of lockdowns being eased and people moving around more, boosting fuel demand.

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.

Further boosting the market, a weekly supply report showed a drop in U.S. crude inventories to their lowest level since March, suggesting output cuts by OPEC+ producers to avert a stock build-up are working.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link