Crude oil futures settled higher on Friday, rebounding from early losses, as tensions in the Middle East raised the possibility of disruptions in crude supplies. Early cautiousness was due to a report from OPEC that lowered the demand forecast and the International Energy Agency's remarks indicating that the re-balancing of the global oil markets remains fragile. OPEC said in its February Oil Market Report that oil demand will likely rise by 5.8 million barrels per day this year, down by around 100,000 bpd from last month's projection due to extended lockdowns and the re-introduction of partial lockdowns in a number of countries. Meanwhile, a report from Baker Hughes said the number of active US rigs drilling for oil increased by 7 to 306 this week. With this, the rig count has risen for 11 straight weeks. The total rig count was up by 5 at 397.
Crude oil futures for March gained $1.23 or 2.1 percent to settle at $59.47 barrel on the New York Mercantile Exchange. April Brent crude rose $1.29 or 2.1 percent to settle at $62.43 a barrel on London's Intercontinental Exchange.