Oil prices gained traction in the first week of February and rose to the highest level in a year after major producers showed strong compliance to output cut commitments by OPEC+ in January.
Further supporting prices, Saudi Arabia engaged in voluntary production cuts of 1 million barrels per day in February and March and Iraq also joined voluntary production cuts to compensate for its overproduction last year; while Russia plans to cut its crude exports by almost 20% to a three-month low in February.
Also, the US Northeast has been hit by a powerful winter snowstorm, providing a massive boost to heating demand in the residential and commercial sectors.
Traders now await weekly inventory reports by the API later in the day and the US EIA on Wednesday, with forecast anticipating another weekly decline. In the early morning in New York, WTI was trading around $54.8 a barrel and Brent about $57.6 a barrel.