Crude oil prices hit highest since February

US crude oil prices rose more than 6% on Friday, posting their biggest weekly gain since February.

US crude oil price movements during the session. Source: Finviz

US crude oil for May delivery rose $2.46 a barrel, or 6.6%, to $39.72 a barrel on the New York Mercantile Exchange.

Brent crude rose $2.38, or 6 percent, to settle at $41.81 a barrel on the ICE Futures Europe exchange. It has gained nearly 7 percent this week, the most since the week ending March 4.

Data showed US crude oil inventories fell by 5 million barrels last week, contrary to analysts' expectations for a 3.2 million barrel increase.

Additionally, the shutdown of the Keystone crude pipeline to Cushing also contributed to a 480,000 barrel reduction in shipments from Oklahoma in the five days through Tuesday, according to Genscape data.

The number of active rigs drilling for oil in the U.S. fell by eight to 354 last week, Baker Hughes said. On this day a year ago, the number stood at 760.

Some investors are expecting US oil production to decline faster than it is now, Again Capital experts said.

Summer maintenance at North Sea fields, a key source of Brent crude, could also support prices in the short term.

Brent crude futures have outperformed Brent spot prices, reversing a trend of several months that suggests investors are betting on higher prices.

Expectations are also high at the upcoming meeting of the Group of Oil Producers in Doha. Russia’s oil output may fall in April, while the country’s energy minister hopes that countries can agree on a deal to freeze supplies.

According to Biz LIVE