On Friday, oil prices rose to a record 10-month high and posted a third weekly gain as supply tightness, driven by Saudi Arabian production cuts, combined with optimism about Chinese demand to lift crude.
Brent crude futures rose 23 cents, or 0.3 per cent, to $93.93 a barrel, and U.S. West Texas Intermediate futures up 61 cents, or 0.7 per cent, to close at $90.77 a barrel. Both contracts traded at 10-month highs on Tuesday for the fifth consecutive session and gained about 4 per cent on a weekly basis.
The biggest increase in oil prices in the first quarter of 2022 is forecasted to occur due to Russia's invasion of Ukraine.
Supply concerns continue to be a driving force for prices since Saudi Arabia and Russia this month announced an extension of their combined supply cuts of 1.3 million barrels per day to the end of this year, Cincotta said.
Better-than-expected industrial production and retail sales data in China have also boosted oil prices this week, with the country's economic conditions considered crucial to oil demand for the rest of this year, Cincotta said.
Data show that processing of oil at refinery in China rose by nearly 20 percent from a year earlier as processors kept run rates high to capitalize on high global demand for oil products.
Third Bridge analyst Peter McNally said expectations of moderating U.S. oil production have also boosted prices in recent weeks.
McNally said: ''S peak's been achieved, said McNally in a statement.
The U.S. oil rig count rose by two this week to 515, the most since April, according to data from oil field services firm Baker Hughes. compared to a year ago, compared to a year ago, the oil rig count is down by 84 units.