Oil gains for fourth day on signs of output cuts, better demand
Oil prices rose for a fourth straight session on Tuesday amid signs that producers are cutting output as promised just as demand picks up, stoked by more countries easing out of curbs imposed to counter the coronavirus pandemic, Reuters reports.
Brent crude climbed 25 cents, or 0.7%, to $35.06 a barrel by 0629 GMT, after earlier touching its highest since April 9.
U.S. West Texas Intermediate crude was up 43 cents, or 1.4%, at $32.25 a barrel. It rose as high as $33.44 earlier in the session, hitting its highest since March 16.
The June WTI contract expires on Tuesday, but there was little sign of a repeat of the historic plunge below zero seen a month ago on the eve of the May contract’s expiry amid signs that demand for crude and derived fuels is recovering from its nadir.
The July WTI contract was in line with the June contract, rising 22 cents a barrel.
The market was boosted earlier by signs that output cuts agreed by the Organization of the Petroleum Exporting Countries (OPEC) and others including Russia, a group known as OPEC+, are being implemented on the ground.
OPEC+ has cut its oil exports sharply in the first half of May, companies that track shipments said, suggesting a strong start in complying with a new production cut agreement.