Oil prices rose for the second week in a row, the first back-to-back weekly gain since February amid optimism around production cuts beginning to eat into a massive supply glut.
Futures in New York climbed 25 percent this week, according to Bloomberg data as explorers are cutting production in response to crude oil trading in the $20-a-barrel range.
The number of U.S. rigs drilling for oil fell to a level not seen since before the shale-oil revolution kicked off at the beginning of the last decade.
As rigs shut and nationwide production lessens, signs of a demand recovery are also occurring, with drivers hitting roadways as coronavirus-led lockdowns ease.
This week’s data from the Energy Information Administration proved bullish.
U.S. gasoline supplied, an indicator of consumption, rose by the most in almost two years last week and nationwide crude production declined for a fifth straight week.