Oil gains, WTI crude hits 16-week high

Oil drilling rigs

Oil extended gains today, Feb. 27, following reports that the OPEC+ is considering extending the agreement to voluntarily reduce oil production in the second quarter. In addition, Russia is said to plan stopping gasoline exports for a period of six months, starting from March 1.

Brent crude futures for May delivery (the most active) rose by 1.2%, or 99 cents, to close at $82.66 per barrel. The April contract added 1.35% to $83.65 per barrel.

WTI crude for April delivery increased by 1.65%, or $1.29, to $78.87 per barrel, marking the the highest close since Nov. 6, 2023 ($79.66).

The US Department of Energy announced that it seeks to purchase three million barrels of crude oil to enhance the strategic reserves. The delivery is scheduled for next August.

The American Petroleum Institute's report on oil inventories is expected later today, and the US Energy Information Administration is scheduled to issue official data on inventories on Feb. 28, amid expectations that crude inventories will rise by 3.9 million barrels.