After an extended period of falling oil prices, which saw oil fall to almost $20 (£14.04) per barrel back in February, sentiment in the oil markets appears to have flipped, bringing hope that oil prices may have bottomed out at last.
On Monday, March 7, crude oil futures traded in New York climbed by 5.5% to $37.90 (£26.60) per barrel, following a 4% rise on the Friday before. In addition to this, the American benchmark price made gains for three weeks in a row, making this the longest period of growth since May last year.
In London, Brent crude oil futures crept up above $40 (£28.08) per barrel for the first time since December 2015, and New York oil markets generally have rebounded by more than 40% since reaching lows of $26.21 (£18.40) a barrel at the beginning of February.
Speaking to the New York Times about the issue, Prestige Economics Founder Jason Schenker explained that low and high prices are often a cure for themselves. Although it is not yet known whether this improvement in oil prices will continue over the long term, it is sure to be good news for some of the world’s biggest oil companies, such as Fuchs Ecocool Ultralife A manufacturer Fuchs Petrolub, Royal Dutch Shell and ExxonMobil.
Monday’s oil rebound came after it was revealed by the oilfield services company, Baker Hughes, that the number of oil and gas drilling rigs globally has fallen to 1,761, down by 130 and at its lowest level since 2002.