Cuts in crude oil production by OPEC and its friendly countries have managed to reduce supply. A weaker dollar makes commodities priced in the U.S. currency more attractive.
Oil extended its gains to $61 per barrel in New York thanks to the stabilization of China's economy, while investors await progress in the trade negotiations between the Asian giant and the United States, which will resume this week. Crude futures rose by up to 1.3 percent, marking their strongest quarter since 2009.
China's manufacturing PMI eased concerns about the global economic outlook and boosted confidence in financial markets.
Chinese Vice Premier Liu He will be in Washington from Wednesday to meet with U.S. negotiators and President Donald Trump.
The dollar fell after four consecutive days of gains, which supported the rise in crude. «The positive risk sentiment, measured by the rise in stock markets, combined with a weaker dollar are helping oil,» wrote Giovanni Staunovo, an analyst at UBS Group AG, in a report.
Oil rose 32 percent in the first quarter when Saudi Arabia urged the Organization of the Petroleum Exporting Countries and its allies to restrict supplies to avoid surpluses.
Unplanned supply losses in Venezuela and Iran have also helped to push prices up, but the trade war between the two largest economies in the world and signs of a slowdown in global growth have limited further gains.
Deliveries of West Texas Intermediate for May gained, this Monday at 10:20 AM Colombian time, 1.46%, trading at $61.02 per barrel; while Brent is trading in London at $68.58 per barrel (+1.48%).
China's manufacturing purchasing managers' index recorded its largest increase since 2012 last month, surpassing all economists' estimates. The news lifted stock markets from Europe to Asia, with Hong Kong's Hang Seng index establishing itself in a bull market. The Bloomberg Dollar Spot Index fell by up to 0.2 percent. A weaker dollar makes commodities priced in the U.S. currency more attractive.
Source: https://www.portafolio.co/internacional/fuerte-subida-de-los-precios-del-petroleo-528050
Colombian Association of Oil and Gas