Oil gained as OPEC and its allies pledged to keep pursuing a speedy market rebalancing while global inventories continue to shrink.
Futures in New York surged as much as 2.7% to the highest in more than a year on Wednesday. A committee of OPEC+ ministers said it will keep pushing to quickly clear the oil surplus left by the pandemic-induced demand slump. Declining inventories are a sign of the group’s work: Chinese stockpiles are at the lowest in almost a year and a U.S. government report on Wednesday showed a crude stockpile drop of nearly 1 million barrels.
“OPEC is holding the line on production, the vaccine rollout is progressing, Covid cases are rolling over and the stimulus package is making some progress,” said Matt Sallee, portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets.
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