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Crude Oil Prices Surge On Tapering Supply, Analysts Wary

Crude oil prices edged closer to $40 per barrel Monday, extending a monthlong rally, on hopes of lower supply and improving global outlook. Prices surged during morning trade in Asia, as U.S. drillers cut the number of active rigs to a six-year low.

Brent crude futures, the global oil benchmark, were trading at $39.13 per barrel Monday, up 1.3 percent from Friday, after falling below $30 in January.

“It looks at this stage as if it [oil] has formed a little bit of a bottom and perhaps we’re going to see a sustained price in the $30s, maybe trending back up to $40 at some point,” Ben Le Brun, market analyst at OptionsXpress, told Reuters.

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