The collapse of West Texas Intermediate crude futures in the United States caused nervous traders to avoid extinction as the May contract expires for the month of the earliest maturity, forcing traders to pay $ 37.63 a barrel when settling to get rid of their contracts.
Prices have recovered somewhat, but have been falling more than 60 percent since the beginning of the year.
On his last day as a close-term contract, Brent futures for June delivery rose $ 2.73, or 12 percent, to $ 25.27 a barrel upon settlement, while West Texas Intermediate U.S. crude futures for June rose $ 3.78, or 25 percent, to $ 18.84 upon settlement. .
It was the highest closing level for Brent since April 20 and US West Texas Intermediate crude since April 16.
Brent global benchmark crude gained about 11 percent in April, after falling more than 65 percent over the previous three months. Meanwhile, West Texas Intermediate crude fell for the fourth consecutive month, falling more than 70 percent during that period, including an eight percent loss in April.
And Brent futures gained the most active in terms of trading for the month of July, which will soon become a contract with the nearest maturity, about nine percent to $ 26.48 a barrel upon settlement.
“Oil prices seem to be very constructive because in the next month or two, supply will meet demand,” said Edward Moya, chief market analyst at Oanda in New York, noting that fears of oversupply are slowly receding with a steady stream of news about reducing crude production.
Norway, the largest oil producer in western Europe, said it would cut production from June to December for the first time in 18 years as it joined efforts by other major producers to support prices and curb excess supplies.
Meanwhile, Royal Dutch Shell said it would cut dividends for the first time since World War II.
ConocoPhillips, the US oil and gas company, said it will sharply reduce oil production in the coming weeks, and it aims to reduce its total production by 35 percent by June.