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2021.02.2508:58:00UTC+00Oil Extends Gains For Fourth Day

Oil prices extended gains for a fourth straight session on Thursday to reach their highest levels in more than 13 months amid expectations that global oil demand will recover to pre-Covid-19 levels of around 100 million b/d by the end of the year.

Benchmark Brent crude rose 40 cents, or 0.6 percent, to 466.58 per barrel, while West Texas Intermediate crude futures were up 26 cents, or 0.4 percent, at $63.48.

As the vaccine rollout gathers pace, analysts say that oil demand could reach the magic number of 100 million b/d by the year-end driven by a strong rebound for gasoline, diesel and fuel oil.

Prices were also supported by the continuation of expansionary monetary policies and lower crude production in the United States.

Federal Reserve Chairman Jerome Powell on Wednesday said the central bank hasn't finished the job of restoring the economy to health, a dovish signal that the Fed will not exit its accommodative monetary policy anytime soon.

A rare winter storm in Texas has caused U.S. crude production to drop by more than 10 percent, or 1 million barrels per day (bpd) last week, the Energy Information Administration said in a report.

Traders shrugged off reports suggesting that the Organization of the Petroleum Exporting Countries and allies, collectively known as OPEC+, will likely consider increasing crude production by 500,000 barrels per day beginning in April. The OPEC+ meeting is scheduled to take place next week.

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