Oil rose above $60 a barrel this morning for the first time this year, bringing gains this week to almost 4%, supported by signs that deeper industry spending cuts may curb excess supply, Reuters reports.
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. The price of Brent crude collapsed from $115 in June to $45.19, the lowest in almost six years, in January due to oversupply. Since January, mounting signs of lower industry spending have helped prices rally by more than 30%.
Brent for April delivery was up $2.23 to $61.51 as of 10 a.m. this morning, after having traded at a high of $61.77 earlier in the session. The March contract expired overnight, with U.S. crude up $1.55 to $52.76.
“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, says in a report.
