Oil turns higher, Brent hits 2-week high

Oil prices turned higher as the US market opened on Monday, after falling by 2% earlier due to the near solution of the Suez Canal crisis while fears over the disruption of oil and gas supply to Europe and North America receded, in addition to rising drilling activity in the US, while prices turned up thanks to expectations of OPEC Plus to extend the current production cuts for an extra month to May.

US crude rose 1.5% to $61.74, after opening at $60.80, and hit a day low at $59.44, and Brent crude rose 1.75% to a 2-week high of $65.46, after opening at $64.34, and hit a day low at $63.16.

US crude gained 4.0% on Friday, and Brent crude futures rose 4.2%, in their second daily gain in 3 days, due to the disruption of traffic in the Suez Canal.

Oil prices lost around 0.6% last week, posting the third straight weekly loss, due to demand concerns in Europe.

The Egyptian authorities announced Monday the success of efforts to float grounded ship, as the rescue teams were able to use the high tide in the early hours today to successfully move the "Ever Given" ship by 80%, and it is expected to completely return in the early hours on Tuesday.

The giant container ship Ever Given blocked traffic in the Suez Canal, one of the world's busiest shipping channels for oil, fuel, grains and other trade between Asia and Europe.

Baker Hughes revealed on Friday that the US drilling and exploration rigs rose 6 rigs last week, to a total of 324, the highest level since the week ending May 1, 2020.

The increase in the US drilling activity boosted the US production by more than 47% since mid-2016 to a total of 13.1 million barrels per day in March 2020, and held recently around 10.9 million bpd due to the coronavirus pandemic, but the US is still the world's largest oil producer.

Reuters reported that OPEC-Plus is expected to extend the current supply cuts for an extra month until May, given the lingering demand concerns over the recent price drop