Crude oil futures ended sharply higher on Friday, extending recent gains, amid hopes on some improvement in energy demand following reopening of businesses in several parts across the globe, and on hopes the output cuts from major producers will support prices.

West Texas Intermediate Crude oil futures for June ended up $1.87, or about 6.8%, at $29.43 a barrel.

Brent Crude futures were gaining about $1.1 or about 3.6% at $32.23 a barrel.

On Thursday, WTI Crude oil futures for June ended up $2.27, or 9%, at $27.56 a barrel.

WTI Crude oil futures gained about 19% in the week.

According to Baker Hughes, the number of active U.S. rigs drilling for oil dropped by 34 to 258 this week, falling for a ninth straight week.

The total active U.S. rig count also fell, dropping by 35 to 339, according to the report from Baker Hughes.

Data showing a notable rebound in China’s daily crude oil use in April amid increased activity supported oil’s uptick.

According to International Energy Agency, (IEA), crude inventories are expected to fall by about 5.5 million barrels per day (bpd) in the second half this year.

The IEA estimates that global oil supply is set to fall by a spectacular 12 mb/d to a nine-year low of 88 mb/d in May, as the OPEC+ agreement takes effect and global production declines.

The material has been provided by InstaForex Company – www.instaforex.com