Oil prices edge up ahead of June contract expiration
Major oil benchmarks added over US$1 per barrel on May 18. The growth was supported by further production cuts, as well as new signs of global recovery from the pandemic.
By 04:52 GMT Brent crude gained US$1.06 - 3.3% - and reached US$33.56 per barrel. The benchmark also touched its highest level since the middle of April. WTI crude added US$1.29 - 4.4% - and stood at US$30.72. Analysts believe, that oil prices are likely to keep growing as travel limitations are being lifted.
WTI’s June contract is set for expiration on May 19. There are currently no noticeable signs of repeating the crash to negative levels, which happened shortly before the May contract expiration.
Overall output is reducing, The energy companies in the United States are shutting down both oil and gas rigs. The dynamic helped alleviate the anxiety over storage space. The number of working energy rigs is currently at its lowest on record.