|
Brent crude rose 51 cents, or 0.6%, to $83.51 a barrel by 1210
GMT. U.S. West Texas Intermediate (WTI) crude for March, which
expires on Tuesday, was up 43 cents, or 0.6%, at $76.77 while
the more active April contract gained 0.6% to $77.02.
The benchmarks settled $2 down on Friday for a decline of about
4% over the week after the United States reported higher crude
and gasoline inventories.
The OPEC+ producer group comprising the Organization of the
Petroleum Exporting Countries (OPEC) and allies including Russia
agreed in October to cut oil production targets by 2 million
barrels per day (bpd) until the end of 2023.
Separately Russia plans to cut oil production by 500,000 bpd,
equating to about 5% of its output, in March after the West
imposed price caps on Russian oil and oil products.
Analysts, meanwhile, expect China's oil imports to hit a record
high in 2023 to meet increased demand for transportation fuel
and as new refineries come onstream.
"We continue to see a reopening of China and a rebound in China
and global jet demand driving upside risk to prices," said Baden
Moore, head of commodities research at National Australia Bank.
China and India have become major buyers of Russian crude since
the European Union embargo.
At the same time, future oil supply shortages are likely to
drive prices toward $100 a barrel by the end of the year,
Goldman Sachs analysts said in a Feb. 19 note.
Prices will move higher "as the market pivots back to deficit
with underinvestment, shale constraints and OPEC discipline
ensuring supply does not meet demand", they wrote.
(Reporting by Noah BrowningAdditional reporting by Florence Tan
and Emily ChowEditing by David Goodman)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
