Oil climbed above $56 a barrel on signs of slowing U.S. production growth and as OPEC and its allies deepened output cuts aimed at averting a global glut.
Futures in New York rose as much as 0.9 percent after a 2.5 percent drop on Friday. Working oil rigs in America fell to the least since May, according data from Baker Hughes. OPEC’s output dropped last month, aided by unplanned supply losses in Iran and Venezuela. The group’s key ally, Russia, also made deeper production curbs. Signs of progress toward a resolution to the U.S.-China trade war brightened the outlook for demand.
West Texas Intermediate for April delivery rose as much as 50 cents to $56.30 a barrel on the New York Mercantile Exchange and traded 32 cents higher at $56.12 at 10:37 a.m. in Singapore. Prices last week had ended lower following weaker-than-expected reports on U.S. factory orders and consumer sentiment.
Brent for May settlement was at $65.40 a barrel, up 33 cents, on the London-based ICE Futures Europe exchange. The global benchmark crude’s premiumover WTI for the same month narrowed to $8.72.
Source : Bloomberg