Oil prices are advancing a second day, with Brent crude rising to almost $34 a barrel for the first time in almost a week.
The US benchmark crude was trading at over $30.
West Texas Intermediate futures rose as much as 2.4 percent in New York after surging 12 percent on Friday. Speculators’ long positionsin WTI through Feb. 9 rose to the highest since June, according to data from the U.S. Commodity Futures Trading Commission. Iran loaded its first cargo to Europe since international sanctions ended, while Chinese crude imports eased from a record.
Oil in New York is down about 20 percent this year. While outlook for increased Iranian exports threatens to further boost record oil stockpiles, major companies including Chevron Corp. and Anadarko Petroleum Corp. are curbing spending on the exploration and development of new resources. Crude surged the most in seven years on Feb. 12 after the United Arab Emirates repeated OPEC’s readiness to engage with other producers.
“The oversupply will decrease sharply over the course of the year,” Andy Sommer, an analyst at Axpo Trading AG in Dietikon, Switzerland, said by e-mail. “Developments in supply and demand mean the market will very closely avoid hitting tank-top levels.”
WTI for March delivery gained as much as 71 cents to $30.15 a barrel on the New York Mercantile Exchange and was at $29.88 at 1:12 p.m. London time. The contract gained $3.23, or 12 percent, to close at $29.44 on Friday after dropping 19 percent the previous six sessions. Total volume traded was in line with above the 100-day average. WTI prices lost 4.7 percent last week.
Brent for April settlement increased as much as 61 cents to $33.97 a barrel on the London-based ICE Futures Europe exchange. The contract climbed $3.30 to close at $33.36 on Friday. The European benchmark crude was at a premium of $1.44 to WTI for April.
In the U.S., drillers idled rigs for an eighth week to the lowest level since January 2010, according to data from Baker Hughes Inc. The number of active rigs dropped by 28 to 439, the company said on its website Friday.
