Investing.com - Oil traders will focus on the outlook for global crude supplies in the week ahead amid signals that OPEC-led production cuts have helped tighten an oversupplied market.
OPEC, which together with some non-affiliated producers like Russia, known as 'OPEC+', agreed late last year to reduce output by 1.2 million barrels per day (bpd) to remove a glut and prop up prices.
U.S. sanctions on Iran and Venezuela, both oil exporters, have also contributed to a tighter market.
Meanwhile, fresh data on U.S. commercial crude inventories and production activity will also capture the market's attention this week.
The Energy Information Administration (EIA) reported last week that U.S. crude supplies unexpectedly rose by nearly 2.8 million barrels.
Offering a hint on future production activity, U.S. energy firms reduced the number of oil rigs operating for a sixth week in a row, cutting eight rigs to the lowest count in nearly a year.
Market players will also be watching for any important developments on the U.S.-China trade front this week. Chinese Vice Premier Lui He will travel to Washington to meet with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin for further talks aimed at ending their months-long trade war.
The U.S. and China are the world’s two largest oil consuming nations. Hopes that the two sides would hammer out an agreement resolving their protracted trade war helped to ease worries about energy demand.
Oil futures posted strong gains on Friday, capping their biggest quarterly rise in a decade.
U.S. West Texas Intermediate crude rose 84 cents, or about 1.4%, to settle at $60.14 a barrel by close of trade. It went as high as $60.73 earlier, the most since Nov. 12.
For the week, the U.S. benchmark ended up roughly 1.9%. It rallied 32.4% over the first three months of 2019, its strongest quarterly advance since the second quarter of 2009.
Meanwhile, International Brent crude oil futures ended Friday's session up 48 cents, or 0.7%, at $67.58 a barrel. Brent saw a roughly 27% quarterly rise, also its strongest since 2009.
Ahead of the coming week, Investing.com has compiled a list of the main events likely to affect the oil market.
Tuesday, April 2
The American Petroleum Institute (API) is to publish its weekly update on U.S. oil supplies.
Wednesday, April 3
The EIA will release its weekly report on oil stockpiles.
Friday, April 5
Baker Hughes will release weekly data on the U.S. oil rig count.
-- Reuters contributed to this report