High oil prices
Prices were also supported by a much-anticipated increase in US crude inventories, easing fears of oversupply in the world’s largest oil consumer.
By 07:34 GMT, Brent crude was up 46 cents, or 0.9%, to $ 51.58 a barrel, while US West Texas Intermediate rose 37 cents, or 0.8%, to record $ 47.15 a barrel.
Margaret Young, market analyst at CMC Markets, said, “Crude oil prices were supported by broadly positive sentiment overnight, with data far below expected … for crude oil stocks.”
“The market is also expecting a reasonable production cut that OPEC + will have, given the significant impact of the Covid-19 virus on global energy demand. More production constraints are needed to raise crude prices,” Margaret added.
The Organization of the Petroleum Exporting Countries is seeking to persuade Russia to join additional deep cuts in oil production to support prices.
The group known as OPEC + is already implementing a cut of 2.1 million barrels per day, which helps prevent a sharp drop in prices.
The Organization of Petroleum Exporting Countries (OPEC) and allies led by Russia, in the framework of an alliance known as OPEC +, agreed last December to a collective production cut of 1.7 million barrels per day until the end of last March.