Muscat: Oman’s crude was traded for April 2021 delivery at $ 60.50 on Tuesday, an increase of 76 cents from yesterday's price of $59.74.
Global stockpiles in onshore tanks and floating storage are estimated by the International Energy Agency to have shrunk by about 300 million barrels since OPEC and its allies made deep production cuts in May.
Reduced supply and the vaccine-driven demand boost have entrenched Brent’s futures price curve in a bullish backwardation structure, which encourages the draining of more oil from tanks.
China has been a key driver of the market rebound. The number of tankers sailing toward the nation jumped to a six-month high on Friday, reports said.
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