On Monday, oil prices held on to its gains from the earlier session. The market for oil remained strong, supported by lesser supply and strengthening sentiment which gives hope for a steadier recovery.
Brent futures for April delivery were trading at $39.20 a barrel at 8.27 p.m. ET. That's about half a dollar more and approximately a percentage point up compared to their last settlement. It is about one third more than the 2016 lows noted sometime in the middle of February, with prices touching levels that have not been noted seen since 2003.
On Monday, ANZ bank said, "U.S. shale producers continue to pull rigs from the ground in an effort to conserve capital."
On Friday, a data revealed that last week, the number of oil rigs dropped for the eleventh straight week to the lowest level noted since December 2009. The main reason behind that was the producers slashing their drilling rig counts, focusing more on the uncompleted wells as oil prices continue to be low.
In its closely followed report, Baker Hughes Inc said that the drillers cut 8 oil rigs in the week that ended on March 4. The total of oil rigs was down to 392.