Crude oil futures ended significantly higher on Thursday on account of drop in supply levels due to OPEC+ production cuts and continued attacks by Ukraine on Russian oil facilities. The OPEC and its allies are meeting next Wednesday. It is widely expected that the group will decide to maintain its output reduction policies. Data showing a drop in jobless claims, and a report showing U.S. GDP surged by an upwardly revised 3.4% in the fourth quarter, raised hopes about the outlook for oil demand. Some support also came in with a recent data showing a smaller than expected increase in U.S. crude inventories, and expectations of increased demand for oil in the U.S. and China.
Benchmark crude oil futures for May delivery rose $1.82 or about 2.2% to settle at $83.17 a barrel on the New York Mercantile Exchange. Brent crude for May delivery gained $1.39 or 1.61% to $87.48 per barrel on London's Intercontinental Exchange.