Crude prices followed last session’s gains on Tuesday, bolstered by hopes for a production freeze agreement among major oil producers in a bid to cut the global supply glut.
On the New York Mercantile Exchange, crude oil for May delivery surged 42 cents or 1.02 percent, to trade at $40.76 per barrel, after climbing 1.6 percent on Monday.
Prices of oil jumped more than 14 percent in the last week, including 6 percent rally on Friday after data indicating that United States crude inventories and the United States oil rig count plunged.
Crude prices were supported amid hopes that Sunday’s meeting of major oil producers in Qatar will result in a deal to keep production in January levels to rein in supply glut.
The meeting will include members from the Organization of Petroleum Exporting Countries and non-OPEC producers.
Russian Energy Minister Alexander Novak stated on Tuesday that he sees global crude prices settling at $40 to $5 per barrel in the second quarter of this year, with potential to hike to $50 by the end of 2016.
However, commodity analysts warned the results of the meeting would have a limited effect on curbing over production, while other analysts cautioned that the results of the meeting would have limited effect on supply, given that the producers have the potential to raise output are not involved in the freeze.
On the other hand, internationally traded Brent crude for June delivery soared 48 cents, trading at $43.31 per barrel.
According to a market analyst, “Market participants are viewing (recent) price falls as a good opportunity to buy. The expectation that oil producers will agree on production caps at their meeting in Doha this Sunday is also bound to be playing its part.”