Oil prices rose on Monday as market sentiment was boosted by output cuts from major oil producers.
The West Texas Intermediate for June delivery increased 0.61 U.S. dollar to settle at 20.39 dollars a barrel on the New York Mercantile Exchange, while Brent crude for June delivery was up 0.76 dollar to close at 27.20 dollars a barrel on the London ICE Futures Exchange.
The Organization of the Petroleum Exporting Countries and its allies agreed to cut output by 9.7 million barrels per day for May and June, aiming to tackle a global supply glut on the back of the COVID-19 crisis.
Meanwhile, U.S. energy companies have made efforts to curb their rig numbers.
The number of active U.S. rigs drilling for oil decreased by another 53 to 325 last week, oilfield services company Baker Hughes reported on Friday. The total active U.S. rig count fell by 57 to 408.
Production cuts by major U.S. shale producers are expected to reach 300,000 barrels per day for May and June, according to estimates by consultant Rystad Energy. Enditem
