Oil jumps 2%, hits highest in a year as producers limit supply | Financial Post

Oil jumps 2%, hits highest in a year as producers limit supply | Financial Post

Oil prices rose 2% on Tuesday, reaching their highest in 12 months after major producers showed they were reining in output roughly in line with their commitments.

The global and U.S. crude benchmarks rallied as optimism about more U.S. economic stimulus added to market bullishness from OPEC production levels, which rose less than expected in January.

Brent crude settled up $1.11, or 2%, at $57.46 a barrel, after its third straight day of gains. During the session, it touched $58.05, the highest levels since January last year.

U.S. oil gained $1.21, or 2.3%, to close at $54.76, after hitting a session high of $55.26, the highest in a year.

Crude output from the Organization of the Petroleum Exporting Countries rose in January for a seventh month but the increase was smaller than expected, a Reuters survey found.