Oil Rises for 4th Day due to a Production Cut and Global Demand Rebound

Oil prices surged on Tuesday, extending gains for a fourth consecutive days due to production cuts and the easing of stay-at-home restrictions supported prices.

 

As of 12.01 local time in Thailand, the price of WTI was at $32.55/bbl, increased $0.73/bbl or 2.29% after hitting its highest since March 16. Meanwhile, Brent was traded at $35.02/bbl, rose $0.21/bbl or 0.60% after touching its highest since April 9.

 

West Texas Intermediate for June contract jumped more than 8% on Monday, one day before the contract expiration.

 

One month ago when, on the day before the contract for May delivery expired, oil prices slumped below zero and into negative territory for the first time in history. As the world was put in the lockdown and storage rapidly filling beyond an expectation.

 

Otherwise, since then the demand has begun to recover, and worldwide oil-production countries have cut an output in order to support the market. OPEC reduced a 9.7 million barrels per day since May 1, and Saudi Arabia, Kuwait and UAE are among the group’s nations that have said they will voluntarily an additional cut on production.