Oil prices surged Monday as data showed oil producers are cutting output amid low prices. U.S. energy firms cut oil rigs for the eleventh straight week, according to the data released by oil service company Baker Hughes Friday.
Analysts expected major U.S. shale oil companies continue to slash spending. U.S. crude production fell to 9.077 million barrels a day by the week ended Feb. 26, a drop of 25,000 barrels daily, according to the report published by the U.S. Energy Information Agency recently.
Market was also boosted as Saudi Arabia and Russia announced recently that they would halt increasing production, and encourage other major producers to follow the suit.
The West Texas Intermediate for April delivery moved up 1.98 U.S. dollars to settle at 37.9 dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery increased 2.12 dollars to close at 40.84 dollars a barrel on the London ICE Futures Exchange.
Latest comments