Tightening oil supplies pushed West Texas Intermediate above US$83 a barrel, extending a rally that has propelled prices to the highest since October.

Ukrainian drone attacks on Russian oil refineries have added pressure to fuel markets, driving up crude demand. JPMorgan Chase & Co. said 900,000 barrels of Russian refinery capacity is offline, adding a risk premium of $4 a barrel to oil prices. Separately, Iraq plans to cut oil exports.

Crude’s upswing in recent days has seen several key market gauges turn more positive. Options markets have their least bearish tilt in months, and key timespreads suggest traders are pricing in a tighter market.

Crude is on course for a third monthly advance after breaking free from a narrow range it had been trading in for much of the year. OPEC+ supply curbs have helped to bolster prices, with Iraq’s this week promising to make good on its output cuts.

Data on Monday showed China’s factory output and investment grew more strongly than expected at the start of the year, and the nation refined a record amount of crude. In the U.S., meanwhile, a still-robust economy has prompted Federal Reserve policymakers to be cautious about when they can start to cut.

Prices:

• WTI for April delivery rose 75 cents to settle at $83.47 in New York.
• Brent for May settlement climbed 49 cents to settle at $87.38 a barrel.