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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.
Brent crude was up 63 cents, or 1.1%, at $59.47 by 1200 GMT
after hitting its highest since Feb. 20 last year at $59.75.
U.S. crude was up 54 cents, or 1%, at $56.77, after reaching
$57.09, its highest since Jan. 22 last year.
"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 last time
it traded at $60, the pandemic had yet to take hold, economies
were open and people were free to travel, meaning demand for
gasoline, diesel and jet fuel was much higher.
The rollout of COVID-19 vaccines, however, is fuelling hopes of
lockdowns being eased, boosting fuel demand. But even demand
optimists such as OPEC do not expect oil consumption to return
to pre-pandemic levels until 2022.
Oil also gained support from supply curbs by producers. OPEC and
its allies, collectively known as OPEC+, stuck to their supply
tightening policy at a meeting on Wednesday. Record OPEC+ cuts
have helped to 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 since March,
suggesting that output cuts by OPEC+ producers are having the
desired effect.
(Additional reporting by Sonali Paul in Melbourne, Roslan
Khasawneh and Koustav Samanta in Singapore; Editing by Jason
Neely and David Goodman)
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