Oil Extends Advance Above $36 as U.S. Explorers Idle More Rigs

Oil extended gains above $36 a barrel as U.S. drillers cut the number of active rigs to the lowest in more than six years amid a global glut.

Futures advanced as much as 1.6 percent in New York and oil in London extended its longest run of gains since November. Rigs targeting oil fell by 8 to 392, the smallest level since December 2009, according to Baker Hughes Inc. That is the 11th week of declines. Azerbaijan will join other producers in freezing output, a proposal being led by Saudi Arabia and Russia, according to Rovnaq Abdullayev, the president of state-run Socar, ANS TV reported.

Oil is still down about 2 percent this year on speculation a surplus will be prolonged amid brimming U.S. stockpiles and the outlook for increased exports from Iran after the removal of sanctions. A meeting to discuss the freeze may be held in Russia, Doha or Vienna during the March 20 to April 1 period, Russian Energy Minister Alexander Novak said on state television Rossiya 24.

West Texas Intermediate for April delivery rose as much as 57 cents to $36.49 a barrel on the New York Mercantile Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term and was at $36.22 at 8:13 a.m. Hong Kong time. The contract climbed $1.35 to $35.92 on Friday, the highest close since Jan. 5. Total volume traded was about 20 percent below the 100-day average. Prices capped a third weekly gain on Friday.

Brent for May Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term increased as much as 48 cents, or 1.2 percent, to $39.20 a barrel on the London-based ICE Futures Europe exchange. The contract rose 10 percent last week. The global benchmark crude was at a premium of 97 cents to WTI for May.

To contact the reporter on this story: Ben Sharples in Hong Kong at bsharples@bloomberg.net. To contact the editors responsible for this story: Ramsey Al-Rikabi at ralrikabi@bloomberg.net, Aaron Clark, Sungwoo Park

By: Ben Sharples

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