Crude Futures Higher On Supportive Supply Picture

Oil is higher to start the week; WTI up $0.22 at $52.42, brent is up $0.33 at $55.38. The increase follows 2 consecutive declines on a weekly basis, after 3 weeks of increases to start off 2021.

• The OPEC+ group estimates it has implemented 99% of its agreed supply reductions in January, according to an unnamed delegate in Bloomberg reports. The compliance data is preliminary and will be reviewed on Tuesday by the group's Joint Technical Committee.
• As we enter a new month, participants also consider the start of the voluntary output cut by Saudi Arabia. The oil giant pledged to reduce output by an additional 1m bpd in February and March.
• Also helping generate supportive supply conditions was Chevron, the company said it would wait under the outcome of the pandemic and the effects of OPEC+ output cuts were clearer before resuming increased shale output.
• Upside was tempered by weak PMI figures from China.
• Market looks ahead to the Feb. 3 OPEC Joint Ministerial Monitoring Committee for fresh cues on supply outlook, as Russia plans to cut Urals exports by 20% in February.