For the first time in the current year, the price of crude oil has risen to more than 60 dollars per barrel after months of decline.
On Friday, European benchmark Brent crude for March delivery was traded at USD 61.50 per barrel in mid-day trading. US crude CLc1 also surged USD 1.94, selling at USD 53.15 per barrel.
The rise in prices was attributed by some traders to indications that growth has accelerated in the eurozone. It was also backed by reports that the German economy expanded at more than twice the expected rate in the last quarter of 2014.
Other business people said growing prices were linked to the falling exploration budgets of energy firms and an ongoing drop in the US oil rig count, which marked a three-year low last week.
Many experts believe there is still a global glut of almost two million barrels per day in crude oil market.
Oil prices have plunged more than 50 percent since June last year to reach the lowest levels in six years.
“Naturally, when prices fall that much within that short a time, you’re likely to have a severe rebound as well, though speculators are possibly adding more fuel on the way up now,” said Phil Flynn, an analyst from the Chicago-based Price Futures Group.
Experts blame the price fall on increased supplies by certain countries such as Saudi Arabia, the largest producer in the Organization of the Petroleum Exporting Countries (OPEC), and lackluster global economic growth.
OPEC, which pumps out about 40 percent of the world’s oil, has so far refrained from cutting its production to balance the market mainly due to opposition from Saudi Arabia. The organization produces about 30 million barrels per day.