The United States crude oil closed at 2019 high on Monday while Brent raised a dollar following tight supply and positive signs for the global economy which is driven by both benchmarks' largest quarter gains in nearly a decade.
United States' West Texas Intermediate futures gained 1.13 percent or 68 cents at $60.82 by 1125 GMT reaching its peak in more than four months at $60.90. West Texas garnered 32 percent in the first quarter.
The June delivery of Brent crude gained $1.03 or 1.52 percent as it closes at $68.54, a 27 percent increase in the three months of 2019. The increasing Chinese factory activity and the progressing China-United States talks complemented the prices in regional stock markets.
Mihir Kapadia, chief executive of Sun Global Investments, said that better-than-expected Chinese manufacturing data has helped markets begin the first day of the new quarter on a bullish note, with major stock indices across Asia surging. He added that Chinese manufacturing output is quite reflective of global demand, and an increase indicates a flurry of economic activity across major economies.
Negotiators from China and the United States said that they are making progress in trade talks held in Beijing which ended on Friday. According to the United States, negotiations were "candid and constructive" as the two economic giants work to resolve their trade war.
A monthly poll conducted by Reuters showed on Friday that analysts are optimistic on the oil market as they projected the average Brent price in 2019 for the first time in five months to $67.12.
The United States Commodity Futures Trading Commission said that the hedge funds and other money managers increased their net long United States crude futures and options positions to 243,209 in the week to March 26.
Based on the report of the United States government on Friday, American production has steadied as domestic output in the world's top crude producer edged lower in January to 11.9 million barrels per day.
Baker Hughes, an energy services firm, said that last week, energy companies in the United States reduced the number of oil rigs that operate to the lowest level in nearly a year. The firm also said that companies cut the most rigs for one quarter in three years.
Prices of oil in the market are increasing because of the United States sanctions imposed on Iran and Venezuela. The voluntary cuts made by the Organization of the Petroleum Exporting Countries and other major producers also affected the crude oil prices.
