Crude oil futures settled higher on Tuesday, extending gains to a seventh session, amid easing worries about outlook for energy demand.
With the vaccination drive gaining momentum in several countries, optimism about a stimulus plan rising by the day, concerns over energy demand have eased a bit. A weak dollar – the dollar index drifted down by nearly 0.5% to 90.50 – also supported oil’s uptick.
West Texas Intermediate Crude oil futures for March ended higher by $0.39 or about 0.7% at $58.36 a barrel, hitting a fresh 13-month high.
Brent crude futures were up $0.40 or 0.69% at $61.10 a barrel a little while ago.
The U.S. Energy Information Administration said in its report that it doesn’t expect the country’s oil industry to return to pre-pandemic levels of production until 2023, not least because it expects the sector to have to fight harder for investment dollars in future.
Later today, the American Petroleum Institute will release its weekly oil report. On Wednesday, the Energy Information Administration’s weekly crude data will be out.