On Monday, oil prices jumped to their highest levels in more than two months due to positive initial results of a possible vaccine against the Corona virus, and optimism about the resumption of economic activity.
Brent crude for July delivery ended the trading session higher, $ 2.31, or 7.1%, to settle at $ 34.81 a barrel.
US benchmark West Texas Intermediate crude for June delivery rose $ 2.39, or 8.1%, to settle at $ 31.82 a barrel.
The highest level in two months
That was the highest settlement level for both benchmarks since March 11th, which a few days later prices began to collapse in the wake of the failure of a production cut agreement between the Organization of Petroleum Exporting Countries (OPEC) and Russian-led producers who make up a group known as OPEC +.
The benchmarks increased their gains in post-settlement trade, with Brent contracts surging more than 9% to $ 35.48 a barrel, while US crude contracts jumped more than 11% to $ 32.74 a barrel.
Cargo monitoring companies said that in the first half of May, OPEC + oil exports fell sharply, indicating a strong start to abide by a new agreement to cut production.
OPEC + agreed to a record supply cut of 9.7 million barrels per day, starting May 1. Last week, Saudi Arabia, the world’s largest oil exporter, announced that it would cut production by an additional 1 million barrels in June.
And the rise of US crude contracts for June delivery, which expires at the end of Tuesday’s session, indicates that the historic decline in the past month that pushed prices to -40 dollars per barrel will not be repeated.