Oil producing companies will have something to cheer about this weekend as crude prices, which had experienced a serious downward slope, are now bouncing back.
According to reports by Reuters, the crude oil futures edged up on Friday, March 4, 2016 as traders and analysts are looking up to the US job data for further momentum to rising prices.
USOil chart by trading view
The report showed that Brent futures rose 19 cents to 37.26 dollars a barrel after settling 14 cents higher in the previous session as analysts predict a minimum of of 5 percent gain to crude benchmark this weekend.
Furthermore, it showed that the US crude futures traded up 13 cents to 34.70 dollars a barrel as it has settled down nine cents in the previous session.
The US government energy information administration informed also that while US crude inventories rose to a new record of 517.98 million barrels last week, the output fell for a sixth straight week to 9.08 million barrels a day with the new development.
Ben Le Brun, a market analyst at the Sydney’s PtionsXpress, said: “A lot of traders are keeping their powder dry in front of non-farm payroll data – it’s the No.1 (indicator) in terms of crude consumers.
“Investors are a little more confident we’ve seen a bottom in oil (prices).”
He also forecast that oil prices will hover around $40 by the middle of this year while other analysts believe positive numbers for February payrolls and US jobs data, both due on Friday, could further give belief for a recovery in oil prices.
Commerzbank analyst, Carsten Fritsch said: “If we get a decent number this should also improve the demand outlook for the U.S. still the largest oil consumer in the world.”
Oil producers are expected to hold meetings among themselves in March to discuss potential coordinated action, although they are yet to decide the date or venue of a possible meeting.