Oil rises to 13-month highs on production cuts, hopes for demand recovery

Oil prices rose to their highest levels in 13 months on Tuesday as major producers’ output cuts and optimism over oil demand recovery boosted energy markets.

Brent crude futures for April delivery rose 0.8%, or 48 cents, at $61.04 per barrel. U.S. West Texas Intermediate crude for March contract was up 0.8%, or 45 cents, at $58.42 per barrel.

Both contracts are at their highest levels since January 2020. Front-month prices for both benchmarks rose for the seventh session on Tuesday, its longest win streak since January 2019.

Saudi’s pledge for more output cuts in February and March are tightening supplies and balancing markets. U.S. crude and gasoline stocks likely climbed last week, while distillate stocks were expected to fall. 

Investors are waiting for the official U.S. weekly oil inventories data due later this week.