Magnifying their previous session’s gains, crude oil futures ended significantly higher on Friday and surpassed the $80 a barrel mark, amid expectations global oil demand will see a surge following announcement of fresh stimulus measures in China. Easing inflation, recent data showing a drop in inventories, and hopes of interest rate cuts helped as well. A report from Baker Hughes said total active rigs drilling for oil and gas in the U.S. increased by 1 to 604, rising for the first time in four weeks. Despite the gain, the total count was down by 116, or 16%, below this time last year.
Benchmark crude oil futures for June delivery rose $0.79 or more than 1% to settle at $80.06 a barrel on the New York Mercantile Exchange. Brent crude for July delivery gained $0.71 or 0.85% to $83.98 per barrel on London's Intercontinental Exchange.