On Monday, in early Asia trade oil extended its gains as the market becmae more bullish following expectations on surging demand and smaller supply.
In New York April delivery crude futures got to $36.57, thus demonstrating a 1.8% ascend. Then, in London May Brent crude futures showed 1.9%, trading at $39.44 a barrel.
Oil prices have been rising steadily in recent weeks, driven by obvious expectations of an output freeze. Four countries, such as Saudi Arabia, Russia, except Iran, decided to freeze future crude output at January’s levels.
Most financial analysts say that while the move won’t do a lot to abate today’s glut, nevertheless, that’s a serious step in the proper direction, and it opens the door for future concessions. Officials of oil-producing nations are going to in Moscow on March 20 to discuss the details of this agreement.
Moreover, there have been other obvious signs that low crude prices are weighing on manufacturing plans. For instance, last week, the number of rigs drilling for oil in America descended to 392. That was the lowest value since 2009.