© Reuters. FILE PHOTO: A sticker says Crude Oil on the side of a storage tank in the Permian Basin
By Noah Browning
LONDON (Reuters) – Oil prices rose on Monday, and Brent hit $ 70 a barrel. Data showed that China's economic recovery accelerated early in 2021 and the outlook for energy demand at the world's largest oil importer improved.
May futures were stable at $ 69.21, down 1 cent a barrel, down 1150 GMT, while US West Texas Intermediate crude oil was at $ 65.62 a barrel for April, up 1 cent corresponds to.
China's industrial production growth accelerated from January to February, exceeding expectations, while daily refinery throughput data rose 15% from the same period last year.
"Confidence is growing that global oil demand will recover as US Covid-19 death toll falls while China's apparent oil demand recovers,"
The market structure, which encourages rapid oil consumption, a pact by top producers to largely contain production, and a rebound in demand due to the introduction of vaccines will continue to drive prices higher despite temporary setbacks, analysts said.
"Futures spreads remain in backwardation and declines remain flat and short-lived," said OANDA senior market analyst Jeffrey Halley.
"Both (benchmarks) will find a procession of willing buyers when these regions are visited."
The supply cuts are due to the fact that the Organization of Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC +, decided earlier this month to extend most of the supply cuts until April.
Leading oil exporter Saudi Arabia cut crude oil supply for at least four North Asian buyers by up to 15% in April while meeting normal monthly needs of Indian refineries, Refinery Sources told Reuters on Friday.
In early February, the US overtook Saudi Arabia to be India's second largest supplier, data from trade sources showed.
Regardless, U.S. energy companies cut the number of oil rigs and drilling rigs in operation by one in the first weekly decline since November, according to Baker Hughes Co.
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