Oil prices rose on Monday due to optimism about China’s demand, more production cuts by major suppliers, and Russian supply cuts.
Brent Crude Oil increased by $1.16, or 1.4%, to $84.16 a barrel at 13:53 GMT.
U.S. West Texas Intermediate (WTI) Crude for March, which expires on Tuesday, rose $1.09, or 1.4%, to $77.43.
While Benchmarks fell $2 on Friday, down 4% for the week, as the US reported higher crude oil and gasoline supplies.
In October, OPEC and its partners, including Russia, agreed to decrease oil output by 2 million bpd by 2023.
After Western pricing restrictions on oil and petroleum products for Russians, Russia plans to cut oil production by 5%, or 500,000 barrels per day, in March.
In 2023, analysts expect China’s oil imports to hit a record high to meet rising transportation fuel demand. And also meet new refinery construction.
“China’s confidence may explain the oil price hikes,” Craig Erlam remarked.
However, the London-based OANDA senior market analyst expects China, the world’s top oil importer, to rebound from COVID-19.
China and India now buy most Russian oil due to the EU embargo.
On February 19, Goldman Sachs analysts forecast that oil shortages will push prices beyond $100 per barrel by 2018.
Prices will rise when underinvestment, shale cap limits, and OPEC discipline cause a market shortfall.
