Oil prices gain on hope for demand recovery

Gulf Today Report 

Oil prices inch up, highest in 13 months on Tuesday due to a reduction in supply by major producers and hope for improvement in oil demand.

Brent crude futures for April gained 48 cents, or 0.8%, to $61.04 a barrel by 04:43 GMT. US West Texas Intermediate crude (WTI) for March was at $58.42 a barrel, up 45 cents, or 0.8%.

This is Brent and WTI highest gain since January 2020. 

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Supply cuts by major producers in February and March have played major roles in tightening supplies and balancing global markets.

Investors are hopeful for demand recovery due to the ongoing vaccine rollout in various parts of the world.

Stephen Innes, chief global markets strategist at brokerage "Progress on US stimulus and optimism around the roll-out and effect of vaccines across the remainder of 2021 and a slightly weaker USD help the view (for a recovery) albeit there was mixed news on the impact of the current vaccines formulated on the emerging South African variant."

Investors are looking ahead to the US weekly oil inventories data due later in the week.