Oil prices rally amid tightening supplies

NEW YORK, March 29 (Xinhua) -- Oil prices posted solid gains on Friday as market participants eyed on continued signs of tightening global supplies.

The West Texas Intermediate for May delivery increased 0.84 U.S. dollar to settle at 60.14 dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery was up 0.57 dollar to close at 68.39 dollars a barrel on the London ICE Futures Exchange.

Weekly data released by Oilfield services company Baker Hughes on Friday showed that the number of U.S. Oil rigs fell by eight in the week to March 29, bringing the total count down to 816.

Oil prices have rallied by far this year, with the U.S. crude futures surging about 32 percent and the Brent futures up 27 percent in the first quarter, supported largely by the on-going supply cut efforts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.

In December, OPEC and other major Oil producers, including Russia, pledged to cut production by 1.2 million barrels per day in order to prop up prices, effective from January.

A latest report by global wealth management and investment banking company Stifel said that the crude Oil market will likely be undersupplied in the second half of this year, creating opportunities for investors.