For the first time in 2015, the price of oil rose above $60
per barrel on Friday, bringing gains to almost 4 percent.
The price rose by mounting signs of lower industry spending which helped prices rally by more than 30 per cent.
The price of Brent crude collapsed from $115 in June 2014 to $45.19 in January, the lowest in almost six years, due to oversupply.
Also supporting oil, euro zone economic growth accelerated unexpectedly in the final quarter of 2014 as the bloc’s largest member, Germany, expanded at more than twice the expected rate.
“During the last weeks, crude oil rebounded driven by improved market sentiment and by expectations that low prices will lead to lower supply growth in 2015,” Daniela Corsini, an analyst at Intesa Sanpaolo, said in a report.
On Thursday, Apache Corp (APA.N), a top US shale oil producer, said it would cut capital spending and its rig count in 2015 following the price collapse, keeping its output growth mostly flat.
Besides Apache’s update, Royal Dutch Shell’s chief executive, also said supply might not be able to keep up with growing demand as companies reduce budgets, and France’s Total (TOTF.PA) announced investment and job cuts.
“Seeing today’s prices, supply will probably not keep pace with this growth. It may even decline, as prices are close to cash costs,” chief executive Ben van Beurden, said.
Still, analysts at JBC Energy in Vienna said in reference to Apache’s moves that spending cuts can easily be reversed