Oil prices rise more than $1, hit one-month highs

Oil prices rise more than $1, hit one-month highs

Oil prices gained over $1 per barrel on Monday, hitting more than a month-high as production cuts and demand recovery provided a floor for the market.

Brent crude rose 3.7%, or $1.19, at $33.69 per barrel. U.S. West Texas Intermediate crude climbed 4.3%, or $1.26, at $30.69 per barrel.

The WTI June delivery will expire on Tuesday, but no signs showed that WTI will trade in negative territory again, as seen last month with the May contract.

U.S. energy firms have cut operations on oil and natural gas rigs to an all-time low for the second week. 

The Chicago Mercantile Exchange, which holds trading for WTI futures, has taken measures to lessen the open positions before the WTI June contract expiry.

The market mood was lifted after Fed Chairman Jerome Powell reported a positive outlook for economic recovery.

Oil production cuts included OPEC and its allies’ 9.7-million-bpd cut from May to June. Saudi Arabia also said that it will cut another 1 million bpd from production. 

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