Global oil prices have made additional gains and touched their highest levels in nearly a year, driving on supply cut commitments and indications of economic growth in the US.

Brent crude futures jumped $0.40 to $59.24 per barrel while the US West Texas Intermediate (WTI) crude futures climbed $0.42 to trade at $56.65 a barrel, reported Reuters.

Both benchmarks are on track to register a weekly gain of 6% and 9% respectively, this week.

Vanda Insights energy analyst Vandana Hari told Reuters: “Rising confidence in an upturn in economic and oil demand recovery around the corner is a major impetus for crude.

“Right now, the concurrent tightening of supply due to the additional Saudi cuts is adding to the tailwinds.”

Earlier this week, the oil cartel Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) supported deep supply cuts to eliminate crude stockpiles, a move which supported oil prices.

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By GlobalData

The market also received support from the stronger-than-expected orders for US goods in December, indicating a rebound in the manufacturing sector, as well as Chinese crude demand.

In addition, US President Joe Biden’s proposed $1.9tn Covid-19 relief package encouraged the market. The US House of Representatives recently voted to fast track the relief package.

CMC Markets chief market strategist Michael McCarthy was quoted by the news agency as saying: “OPEC+ discipline has been a real positive. And then when we have signs of better economic growth, then it’s up and away (for prices).”