The trading day was a good one for the oil bulls. The thing is that Brent oil managed to get it price break above $39 per barrel on ICE exchange in London. More specifically, the Brent futures for May delivery saw their price increase all the way up to $39,5 per barrel. Later on, the price retraced a bit down to $39,4 per barrel. This was a good rally given the fact that the trading day opened at 38,9 per barrel and rallied in a mater of hours.
It is interesting to note that the last time the price exceeded $39/b was early January 2016. At the same time, December 2015 was the last time Brent oil saw $39,5 per barrel, Masterforex-V Academy experts report.
According to Bloomberg, oil prices are currently advancing mainly due to the fact that U.S. oil companies are cutting down on the amount of functioning oil rigs. This is expected to end up in oil production cuts. However, other exporters may well make up for it at any time, which something the global market of crude oil doesn’t need anyway since the oversupply is still high.
According to Baker Hughes Inc, the amount of U.S. oil rigs shrank all the way down to 392 units. By the way, this is the lowest homer of oil rigs since late 2009. With that being said, the experts no longer expect oil prices to freeze somewhere around $20/b, which is definitely good news to oil-exporting nations out there.
