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Oil prices rally amid declining supplies
Oil prices surged on Monday as data showed oil producers cutting output amid low prices.The US 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 US shale oil companies continue to slash spending, Xinhua news agency reported.
Oil prices surged on Monday as data showed oil producers cutting output amid low prices.The US 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 US shale oil companies continue to slash spending, Xinhua news agency reported.
The US crude production fell to 9.077 million barrels a day by the week ended February 26, a drop of 25,000 barrels daily, according to the report published by the US 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 to settle at $37.9 a barrel on the New York Mercantile Exchange, while Brent crude for May delivery increased $2.12 to close at $40.84 a barrel on the London ICE Futures Exchange.
