Last Monday marks the eight day of oil prices’ rise. This also marks its lengthiest stretch of daily gains in about five years following a released data suggesting the production in the United Sates has been moderated.
The drilling activities for fresh U.S. oil output have been down for the very first time this year as it declined as much as two rigs. Meanwhile government figures from the U.S. government displayed what seems to be a drop in crude production in April.
Standard Chartered noted on Monday that there is still a significant shortfall in onshore production corresponding to the markets estimations. According to their views, the slipping of prices has caused the production in the U.S. to be stagnant and the adjustments for May and June will confirm that supply is rising.
International benchmark Brent crude futures was 19 percent up or 92 cents to trade at $49.69 a barrel following its advance by 5.2 percent on the previous week. Brent crude finished to its highest intraday level in three weeks on the day. U.S. West Texas Intermediate (WTI) crude futures edged higher by 2.2 percent or $1.03 to end at $47.07 a barrel. This marks WTI’s four-week closing high which adds up more than 7 percent on last week’s gain.
The price of crude released its lengthiest unbroken stretch of gains since February 2012. Carsten Fritsch, senior analyst at Commerzbank, said that the prior movement was all about market sentiment. Fritsch noted a 100,000 barrel per day (bpd) decline in U.S. output driven by maintenance, tropical storms and a U.S. rig count decline.