Oil rose above $30 a barrel for the first time in two months as producers in the U.S. and elsewhere continued to cut output. Futures in New York climbed about 5.6%, rallying ahead of an expiration period that a month earlier saw prices turn negative for the first time. The number of drilling rigs in the U.S. fell for a ninth week to levels not seen in more than a decade, while stockpiles at a key storage hub in Cushing, Oklahoma, shrank for the first time since late February. Saudi Aramco didn’t give extra volumes of oil to three Asian customers who asked for it, according to refiners.
“Momentum is currently with the bulls,” said PVM Oil Associates analyst Stephen Brennock. “However, while supply dynamics are supportive, the demand outlook is still clouded by downside risks.”