Oil rose on Thursday to its highest since March at $34.40 per barrel, supported by lower U.S. crude inventories, OPEC-led supply cuts and recovering demand as governments ease restrictions on people's movements imposed due to the coronavirus crisis.

In the latest sign of a supply glut easing, U.S. crude inventories fell by 5 million barrels last week. 

Physical crude markets, at historic lows just weeks ago as demand collapsed, are also rebounding. 

The Organization of the Petroleum Exporting Countries, Russia and other allies, known as OPEC+, agreed to cut supply by a record 9.7 million barrels per day (bpd) from May 1 to support the market.

So far in May, OPEC+ has cut oil exports by about 6 million bpd, suggesting a strong start in complying with the deal. 

Where are prices heading next? Watch The Gold & Silver Club Commodity Report now with Phil Carr for the latest price forecasts and predictions:

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