Oil extends rally after OPEC+ pledges to keep clearing surplus

Oil rose for a fourth day after OPEC and its allies pledged to keep rapidly clearing the global surplus built up during the Covid-19 pandemic.

Futures in New York traded above $56 a barrel after closing at the highest level in more than a year. OPEC+ ministers led by Saudi Arabia and Russia “stressed the importance of accelerating market re-balancing without delay” amid “uncertain” prospects for oil demand, according to a communique.

The alliance’s efforts appears to be working despite a still tenuous recovery in demand: US crude stockpiles shrunk to the smallest in more than 10 months, government figures showed Wednesday, while Chinese inventories are at the lowest in almost a year, data provider Kayrros said. West Texas Intermediate is up around 7% this week, while Brent is within sight of $60 a barrel.