New Delhi: The oil
prices rose on Monday, extending sharp rises from the end of last week,
following a decline in US inventories and drilling, while outages and hopes
that exporters could freeze output boosted international prices.
Analysts have said that
the global oil demand could accelerate, helping to tighten a market that has suffered
from ballooning oversupply since mid-2014, although weak Asian economic data
weighed on markets. US crude futures rose above $ 40 a barrel in early trading
but eased back to $ 39.81 a barrel by 0147 GMT, still up by nine percent from
their last close. Analysts have also said that they are expecting global oil
demand to grow at a mean annual rate of 1.4 percent between 2016 and 2020,
compared with annual growth of 1.1 percent over the past decade and an
International Energy Agency estimate for demand to grow by 1.3 percent over the
next five years.
US energy firms cut oil
rigs for a third week in a row to the lowest level since November 2009 as
energy firms slash spending. Drillers cut eight oil rigs in the week to April
8, bringing the total rig count down to 354. Brent was lifted by production
outages in the North Sea and West Africa and by hopes that a meeting of
exporters planned for April 17 would lead to an agreement to rein in ballooning
overproduction, that sees at least one million Barrels Per Day (BPD) pumped in
excess of demand.
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