Oil prices increase for 5th straight day

Oil futures were up on Tuesday with U.S. benchmark West Texas Intermediate prices seeing a fifth straight gain.

Analysts say investors wagered on a slowdown in production and a possible gradual increase in the appetite for the commodity.

WTI rose 20%, going up $4.17 a barrel and ending the day at $24.56 on the New York Mercantile Exchange. Brent crude, the international benchmark rose $4.57 to end the day at $31.77, a 17% increase.

Natural gas prices on the NYMEX rose 14 cents to hit $2.13 per MMBtu, which was a 7% increase.

“As more economies start to reopen, crude oil finds itself in the opposite situation of where it has been, as the forces which drive the price collapse—falling demand and a failure to cut production—start to reverse into a situation of potentially recovering demand and falling production,” said Colin Cieszynski, chief market strategist at SIA Wealth Management, in a daily note.

OPEC’s agreement to reduce output by 9.7 million barrels a dayin May went into effect on Friday. It comes as more and more U.S. producers are voluntarily cutting their crude production including ConocoPhillips

An agreement between the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, to reduce output by 9.7 million barrels a day in May and June officially began on May 1. Separately, some U.S. oil have also announced plans for voluntary output reductions, including ConocoPhillips which saw a 1.38% increase as its prices rose 56 cents to reach $40.92 a barrel.

SandRidge Energy wasn’t so fortunate as its prices started the day above the $2 mark and fell 12 cents or 6% to hit $1.96. Chesapeake Energy added two cents and finished the day at $15.47 a share. Devon Energy recorded a 24 cent or 2% decline and finished at $11.18 a share.

Marathon Oil dropped 29 cents and ended trading 5% down at $5.53. Phillips 66 saw a 2% increase amounting to $1.72 and ended the day’s trading at $75.20.

ONEOK was up 74 cents or 3% at $29.93. American Electric Power grew by 26 cents to reach $83.31 a share.