It seems that energy speculators are more positive than most that the June 2nd meeting will bear fruit after the failure of the April 20th meeting.
Baker Hughes on Friday afternoon after the oil services firm reported that U.S. oil rigs last week dropped by 11 to 332 last week to hit a fresh six-year low.
Venezuela is an immediate supply risk. In the next two weeks there is potential to have some serious disruption," Olivier Jacob at consultancy Petro matrix said.
Falling U.S. output has also been a supporting factor in oil's recovery.
Brent received extra support from news that Saudi Arabia and Kuwait appear no closer to restarting their jointly operated Khafji oilfield, which produced 280,000 to 300,000 barrels per day before environmental problems forced a closure in October 2014.
Analysts warned of more supply as Saudi Arabia and Iran seemingly ramp up output in a race for customers, further flooding the market with excess supplies.
Saudi Arabia's cabinet has agreed on a broad-based economic reform plan, known as Vision 2030, revealing how the oil-reliant state plans to diversify its economy over the next 14 years.
The Fed's decision continues a good week for oil prices, with research by an industry group earlier this week indicating US crude inventories had dropped in the latest week, according to Reuters.
In its statement, the US central bank implied it was in no hurry to raise rates, continuing the increasingly dovish tone it has taken since raising rates for the first time in December.
US economy had slowed to its weakest pace in two years in Q1, growing by just 0.1%, down from 0.4% in the previous quarter and below analysts' forecasts of 0.2%.
Despite slipping from the highs, analysts said oil market sentiment had clearly turned bullish, and further price rises were likely.
Commerzbank warned that oil prices at $50 a barrel should make drilling attractive again for some shale producers.
Monthly Oil Market Report: BY OPEC
• Friday, 13 May
• Monday, 13 June
• Tuesday, 12 July
• Wednesday, 10 August
• Monday, 12 September
• Wednesday, 12 October
• Friday, 11 November
• Wednesday, 14 December
TECHNICAL VIEW
MCX CRUDE OIL as seen in the monthly chart for the month of April opened at 2560 levels and made low of 2355 levels. During this period prices corrected & made high of 3115 levels finally closed at 3029 levels. Now, there are chances of upward movement technically & fundamentally.
Technical view: Crude oil during the April made low 2355, but not sustain the near lows. As per candlestick pattern it has hammer, it is bearish reversal pattern, expected to bounce the prices for upside.
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