Oil prices extended gains, propped-up by indications of stronger demand, strong production curbs led by OPEC and a slight decline in U.S. production.
U.S. WTI crude traded up 4 cents at $63.95 per barrel. The contract, which has advanced for four consecutive days, reached its highest since February 6 at $64.24 per barrel. International London Brent crude rose for a fifth day, trading 1 cent up at $67.51 per barrel.
Prices have been rallying since the U.S. EIA last week said that there was an unexpected decline in oil stockpiles amid a decline in imports and a jump in exports.
Aside from the drawdown in Cushing inventories, another supply disruption in Libya has also provided a boost to oil prices, according to traders.
On Saturday, Libya’s National Oil Corp declared force majeure for the 70, 000-bdp El Feel oilfield after it was closed by a protest by guards.
U.S. crude stockpiles are expected to have increased by 2.7 million barrels last week, an initial Reuters poll showed. Meanwhile, gasoline stocks are projected to decline by 600, 000 barrels. Distillate inventories are seen to fall by 700, 000 barrels.
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