Lachlan Shaw, head of commodity research at National Australia Bank said, "the strategy was very clear. OPEC and allies set out to cut a deal that would normalise global excess inventory through 2021 - well, they're on track."
Supporting the market is the unexpected fall of the US crude and gasoline inventories. The American Petroleum Institute reported US crude oil inventories fell by 4.3 million barrels in the week to Jan. 29.
Gasoline stocks fell by 240,000 barrels, defying analysts' expectations for a build of 1.1 million barrels, while distillate inventories, which include heating oil and jet fuel, fell by 1.6 million barrels, a bigger draw than expected.