Oil prices reach $42/barrel as OPEC+ laggards pledge better compliance

A premium for oil for immediate delivery usually indicates tightening supply and encourages storage to be drawn down

Oil rose to above $42 a barrel on Friday, adding to gains in the previous session, after OPEC producers and allies promised to meet supply cuts and signs of demand, hit by the coronavirus crisis, recovering.

Iraq and Kazakhstan, during a meeting of an OPEC+ panel on Thursday, pledged to comply better with oil cuts, sources said. This means curbs by the Organization of Petroleum Exporting Countries and allies, known as OPEC+, could deepen in July.

"There is enthusiasm in the market that oil supply is still under control," said Paola Rodriguez Masiu, analyst at Rystad Energy. "A positive OPEC+