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Oil Demonstrates Biggest Weekly Gains Since Start of March

April 8, 2016 at 20:38 by Vladimir Vyun

Crude oil demonstrated strong gains today as supply from the United States was falling. Baker Hughes reported that the number of US oil rigs fell by 8 this week. Earlier during the week, the Energy Information Administration reported that US oil reserves shrank unexpectedly by 4.9 million barrels. Analysts say that US producers will not be able to rebuild supply quickly even if a rise of oil prices warrants higher production.

There is also a meeting of major oil-producing countries on April 17. While experts are skeptical about the ability of politicians to reach an agreement to freeze output, Nawal al-Fazaia (Kuwait representative in the OPEC) said that there are alternative ways to boost prices.

May contract for delivery of WTI crude oil jumped as much as 6.04% to $39.51 per barrel as of 20:30 GMT on NYMEX today. June Brent crude soared 5.88% to $41.75 per barrel on ICE. Both grades of oil rallied about 8% over the week — the biggest weekly gain since the beginning of March.

If you have any questions and comments on the commodities today, use the form below to reply.

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