Oil prices rise, extend gains in Asia market

Oil prices have surged in the Asian market, extending gains in the previous session following reports that major petroleum companies are trimming investment.

On Friday, US benchmark West Texas Intermediate (WTI) for March delivery gained 52 cents to stand at USD 51.73.

Meanwhile, Brent crude for April was trading up 53 cents at USD 59.81.

Oil prices have plunged about 60 percent since June last year.

The steep falls in prices are caused by the slowing global economic growth and an oversupply of the energy resource.

Oil prices have, however, rebounded slightly after leading oil producing firms, including French energy major Total and Royal Dutch Shell, decided to cut some investment.

The announcement by US oil companies to slash budget and cut drilling activity has also prompted oil prices to rise.

Analysts say it seems unlikely to see a reversal of low oil prices unless crude production levels go down, adding that prices will go up again once the output is significantly cut.

AR/AS/HMV

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