Oil rises above $56 as tighter supply offsets virus concern | Reuters
Oil rose above $56 a barrel on Tuesday and stayed close to an 11-month high, as tighter supply and expectations of a drop in U.S. inventories offset concerns over climbing coronavirus cases globally.
Saudi Arabia has said it will cut output by an extra 1 million barrels per day (bpd) in February and March to stop inventories from building up. The latest U.S. oil supply reports are expected to show crude stocks fell for a fifth straight week. [EIA/S]
Brent crude had climbed 58 cents, or 1%, to $56.24 a barrel by 0920 GMT, while U.S. West Texas Intermediate (WTI) gained 42 cents, or 0.8%, to $52.67.
“I think the market will be rapid to conclude that yesterday’s modest pullback in price, provided the virus spread in China remains contained, was but a blip on the radar screen,” Stephen Innes, chief global market strategist at Axi, said in a report.
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