Oil maintains gains

Oil continued to rise as Ukraine’s drone strikes on Russian refineries and OPEC+’s focus on supply cuts continued. Brent crude settled near $87 a barrel after closing at its highest since late October on Monday. U.S. crude was below $83. About 600,000 barrels of Russian refining capacity were taken offline by the strike, according to Gunvor Group Ltd., while J.P. Morgan Chase and Co. put the figure at about 900,000 barrels. Crude is on track for a third monthly gain after breaking out of a narrow range in which it had traded for much of the year. OPEC+ supply cuts helped lift prices, and Iraq said this week it would cut oil exports in the coming months to make up for earlier promises to cut output. Data on Monday showed China’s factory output and investment rose more strongly than expected at the start of the year, and the country refined a record amount of crude. Meanwhile, the US economy remains strong, prompting Fed policymakers to remain cautious about when they might start cutting rates. “The pick-up in economic activity in both the US and China and investor optimism have raised hopes of healthy demand in the two largest consumers of crude oil. However, the upcoming Fed policy decision, where the Fed is expected to keep interest rates on hold, could add to demand concerns,” said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova Pte.