date of publication:18.05.2020 | 10:57 GMT |
Last updated:18.05.2020 | 12:07 GMT | money and business
Oil prices continue to rise, today, Monday, as the “Brent” mix rose above the level of $ 34 a barrel, hitting its highest level since the beginning of last April.
Brent crude futures were traded, at 13:35 Moscow time, at 34.45 dollars a barrel, 6% higher than the previous settlement price.
While US crude futures were trading at $ 31.85 a barrel, an increase of 8.22% over the previous closing price, according to the “Bloomberg” website.
The rise in black gold prices came amid signs of a recovery in demand for crude after a sharp decline recorded last month.
And oil markets are supported by production cuts implemented by the “OPEC +” group, and from the partial return of economic activity in some countries.
Also, oil production in the United States is declining as American energy companies reduce the number of operating oil and gas rigs to the lowest level ever for the second week in a row.
In part, this has allayed fears of running out of storage capacity at the point of delivery for the US crude contract in Cushing, Oklahoma.
“In light of the sudden pull that we have seen from stocks in the United States last week, it seems very unlikely that the storage capacity will be renewed,” said Michael McCarthy of Sydney’s CMC Markets.
Source: “Reuters” + “Bloomberg”