Oil rose to $60 a barrel in New York for the first time since December, extending the biggest monthly advance since May 2009 on signs the U.S. supply glut is easing.
Futures rose as much as 2.1 percent in New York after gaining 25 percent in April. Crude stockpiles at Cushing, Oklahoma, the biggest U.S. oil-storage hub, last week shrank for the first time since November, according to government data. EOG Resources Inc., the biggest shale-oil producer, said it lost money in the first quarter after taking steps to halt output growth following the slump in prices.
Oil has rebounded from a six-year low reached in March as U.S. drillers cut the number of operational oil rigs to the fewest since 2010, adding to signs that the surplus may decline. U.S. crude stockpiles are still at the highest in 85 years, raising speculation the rally may falter.
“Round numbers are always to be watched,” Olivier Jakob, managing director at Petromatrix GmbH said by e-mail from Zug, Switzerland. “U.S. markets are getting excited about any hints of lower production or stock draws in Cushing. U.S. crude oil production hasn’t yet started to decline but crude oil prices have already risen.”
West Texas Intermediate for June delivery was at $60.13 a barrel in electronic trading on the New York Mercantile Exchange, up $1.20, at 8:11 a.m. New York time. It gained as much as $1.22 to $60.15 a barrel. The volume of all futures traded was 35 percent below the 100-day average for the time of day. Prices climbed 13 percent this year.