WTI crude oil prices are on the rise early on Thursday, after OPEC and its allies confirmed their commitment to extending crude production curbs during their latest meeting even as crude inventories in the US registered a sharp decline. At the time of writing, WTI crude oil is trading at around $56.06 per barrel.

During the previous session, WTI crude oil prices surged to a one-year high after OPEC+ stated that they wanted to help balance markets that have suffered weakness in oil demand as a result of the lockdowns and restrictions due to the coronavirus pandemic. At their meeting, the leading oil producing nations reached an agreement to continue with the deeper supply cuts amid the uncertainty for economic recovery despite the rollout of COVID-19 vaccines.

Crude oil is also trading bullish on the back of the EIA report which released on Wednesday and revealed a decline in crude stockpiles in the US by 994k barrels to 475.7 million barrels during the past week. The figures went against economists’ expectations for a build of 446k barrels instead, and boosted traders’ hopes that oil demand among the world’s largest energy consumer was on the uptick.

In addition, the positive sentiment in oil markets remains supported by the developments related to the rollout of vaccines that can help contain the pandemic. Several parts of the world have started distributing vaccines, which have markets hopeful that lockdowns and travel restrictions could ease and drive oil demand higher in the coming months.