Investing.com - Crude oil prices rose sharply in Asia on Monday as investors kept a possible deal on a production freeze in focus.
On the New York Mercantile Exchange, crude oil for delivery in April jumped 1.75% to $36.55 a barrel.
At the weekend, China outlined growth and other aims for the economy at an annual meeting of senior leaders that signalled GDP growth of 6.5%, or above.
In the week ahead, oil traders will be focusing on U.S. stockpile data on Tuesday and Wednesday for further evidence of a slowdown in U.S. production amid mounting concerns over a domestic supply glut.
Developments surrounding a potential deal between OPEC and non-OPEC producers to cap output will also be in focus.
Last week, oil prices climbed to the highest level since early January on Friday, as traders shifted their focus from a global supply glut to signs of slowing U.S. shale production amid continued hopes that major producers will work together to freeze output.
Oilfield services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. decreased by eight last week to 392, the 11th straight weekly decline and the lowest level since 2009.
There are now nearly 69% fewer rigs of all kinds from a peak of 1,609 in October 2014. A lower U.S. rig count is usually a bullish sign for oil as it signals potentially lower production in the future.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for May delivery soared $1.65, or 4.45%, on Friday to close the week at $38.72 a barrel after rising to an intraday peak of $38.95, a level not seen since January 4.
Brent futures are up by roughly $9, or 25%, since briefly dropping below $30 a barrel on February 11. Short-covering began in mid-February after Saudi Arabia and fellow OPEC members Qatar and Venezuela agreed with non-OPEC member Russia to freeze output at January levels, provided other oil exporters joined in.
A meeting is planned later this month in which producers will discuss the details of the proposed action.
Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by OPEC last year not to cut production in order to defend market share, driving down prices by more than 70% over the past 20 months.