Oil prices rose on Friday and were on course for a second consecutive week of gains as U.S. producers rapidly shut crude production and more states moved ahead with plans to relax lockdowns intended to prevent the spread of America’s worst public health crisis in a generation.
U.S. West Texas Intermediate crude gained $1.19, or 5%, to settle at $24.74 per barrel, while the international benchmark Brent crude gained $1.51 to settle at $30.97 per barrel respectively.
North American oil companies have shut production faster than CRUDE OIL analysts expected and are on track to withdraw about 1.7 million barrels per day (bpd) of output by the end of June.
#Crudeoil rallies as market eyes tightened global supply picture
* Noble, EOG, Baytex announce production cuts
* WTI up 25% on the week
* Better-than-expected US jobs report sees unemployment hit post-WWII high
— Platts Oil (@PlattsOil) May 8, 2020
— CrudeOilBrokers (@CrudeOilBrokers) May 8, 2020
Investors are optimistic about the lifting of the coronavirus blockade in the United States and around the world, international oil prices have risen continuously for a while, but it is still too early for oil prices to continue to rebound. Insufficient global crude oil storage space is still a major problem.