Crude oil prices moved up sharply on Friday amid slight improvement in demand for petroleum products.
With several countries easing lockdown restrictions and reopening some crucial businesses, it is widely expected that the demand for energy will gradually improve in coming weeks.
Traders were also betting on output cuts by major oil producers this month. Another factor contributing to the rise in oil prices was the report from Baker Hughes saying another drop in U.S. rig count.
West Texas Intermediate Crude oil futures for June ended up $1.19, or about 5.1%, at $24.74 a barrel.
On Thursday, WTI crude oil futures ended down $0.44, or 1.8%, at $23.55 a barrel, despite spurting to a high of $26.74 earlier in the day.
WTI front-month contract ended more than 25% in the week.
Brent Crude futures moved up by about $1.50 to $30.97 a barrel today.
Australia became the latest country to announce plans to reopen its economy. The country has a three-step plan to build confidence and momentum that will see its economy get back up and running by July.
France, parts of the United States and countries such as Pakistan are also planning to ease their lockdown restrictions.
On the supply side, North American oil companies are slashing production faster than OPEC officials and industry analysts had expected.
Positive news regarding the U.S.-China trade talks also supported oil prices.
According to the report released by Baker Hughes the number of active U.S. rigs drilling for oil fell for an eighth straight week, dropping by 33 to 292. Meanwhile, the total active U.S. rig count fell by 34 to 374, the report said.
The material has been provided by InstaForex Company – www.instaforex.com
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