Oil closes at 6-month high; Brent crosses $87

Oil drilling rigs

Oil prices extended gains today, April 1, amid heightened expectations of a rise in demand for oil and in anticipation of the OPEC+ meeting this week.

Brent crude futures for June delivery rose 0.5%, or 42 cents, to close at $87.42 per barrel, the highest contract level since Sept. 18, 2023 ($87.56).

WTI crude for May delivery rose by 0.65%, or 54 cents, to record $83.71 per barrel, which is also the highest settlement since Sept. 18 (at $83.89).

Data from S&P Global showed industrial activity grew in the US and China in March, with the Purchasing Manager's Index recording 51.9 points and 51.1 points, respectively, which may support energy demand.

The Organization of the Petroleum Exporting Countries (OPEC) pumped 26.42 million barrels per day during March, a decrease of 50,000 barrels per day from OPEC’s production in February, and the largest production cuts during the past month came from Iraq and Nigeria, Reuters survey showed.

According to data from the Energy Information Administration, US crude oil production fell to 12.5 million barrels per day in January, down 6% from December, due to snowfall, rain, and winter storms.