<p>Oil prices rose more than 1 per cent on Tuesday after major crude producers showed they were reining in output roughly in line with their commitments, extending gains in a market thrown out of kilter by weak demand during the coronavirus pandemic.</p>.<p>Brent crude was up 77 cents, or 1.4 per cent, at $57.12 a barrel by 0950 GMT, its third straight day of gains. US oil gained 82 cents, or 1.5 per cent, to $54.37. Both contracts rose more than 2 per cent in the previous session.</p>.<p>OPEC crude production rose for a seventh month in January but the increase was smaller than expected, a Reuters survey found.</p>.<p>Also, voluntary cuts of 1 million bpd by OPEC's de facto leader, Saudi Arabia, are set to be implemented from the beginning of February though March.</p>.<p>"With OPEC and its allies (OPEC+) endeavouring to keep global oil production below demand, we expect petroleum inventories to keep falling," UBS said in a note.</p>.<p>"With inventories starting to drop in 2H20, the structure of the futures curve has shifted to become downward sloped. This is attracting investors."</p>.<p>The investment bank forecast Brent would reach $63 a barrel by the second half of this year and $65 by the first quarter of 2022.</p>.<p>Russian output increased in January but in line with the agreement on reducing production, while in Kazakhstan oil volume fell for the month.</p>.<p>However, energy giant BP flagged a difficult start to 2021 amid declining product demand, noting that January retail volumes were down by around 20 per cent year on year, compared with a decline of 11 per cent in the fourth quarter.</p>.<p>Oil demand is nevertheless expected to recover in 2021, BP said, with global inventories expected to return to their five-year average by the middle of the year.</p>.<p>Helping to support prices, a severe blizzard hitting a large area of the northeastern United States is pushing up demand for heating fuel.</p>
<p>Oil prices rose more than 1 per cent on Tuesday after major crude producers showed they were reining in output roughly in line with their commitments, extending gains in a market thrown out of kilter by weak demand during the coronavirus pandemic.</p>.<p>Brent crude was up 77 cents, or 1.4 per cent, at $57.12 a barrel by 0950 GMT, its third straight day of gains. US oil gained 82 cents, or 1.5 per cent, to $54.37. Both contracts rose more than 2 per cent in the previous session.</p>.<p>OPEC crude production rose for a seventh month in January but the increase was smaller than expected, a Reuters survey found.</p>.<p>Also, voluntary cuts of 1 million bpd by OPEC's de facto leader, Saudi Arabia, are set to be implemented from the beginning of February though March.</p>.<p>"With OPEC and its allies (OPEC+) endeavouring to keep global oil production below demand, we expect petroleum inventories to keep falling," UBS said in a note.</p>.<p>"With inventories starting to drop in 2H20, the structure of the futures curve has shifted to become downward sloped. This is attracting investors."</p>.<p>The investment bank forecast Brent would reach $63 a barrel by the second half of this year and $65 by the first quarter of 2022.</p>.<p>Russian output increased in January but in line with the agreement on reducing production, while in Kazakhstan oil volume fell for the month.</p>.<p>However, energy giant BP flagged a difficult start to 2021 amid declining product demand, noting that January retail volumes were down by around 20 per cent year on year, compared with a decline of 11 per cent in the fourth quarter.</p>.<p>Oil demand is nevertheless expected to recover in 2021, BP said, with global inventories expected to return to their five-year average by the middle of the year.</p>.<p>Helping to support prices, a severe blizzard hitting a large area of the northeastern United States is pushing up demand for heating fuel.</p>