For the first time in seven months, oil prices soared in European trade on Thursday, with Brent futures reclaiming more than a $50-level.
July delivery for Brent oil climbed to an intraday high of $50.26 a barrel— the most since November—on the ICE Futures Exchange in London. It settled at $50.15 by 07:52 GMT, higher 41 cents or 0.82%. Brent futures rose $1.13 or 2.32% a day earlier, as traders watched out for the supply outages in countries Nigeria, Canada and Venezuela.
Despite the unsuccessful discussions at a Doha summit in April which was aiming to achieve a production freeze among OPEC and Non-OPEC producers, Brent futures prices are up by approximately 85% since shortly declining below $30 a barrel in mid-February.
Meanwhile, crude oil for July delivery on NYMEX gained 33 cents or 0.67%, trading at $49.89 a barrel after the prices reached a daily peak of $49.97, a level last achieved on October of last year.
New York-traded oil futures jumped 94 cents, 1.93% on Wednesday, after data revealed that U.S. oil supplies had declined more than expected in the previous week.
In a weekly report, the U.S. Energy Information Administration stated that crude oil supply dropped by 4.2 million barrels last week to 537.1 million. Analysts’ anticipated a crude inventory decline of 2.5 million barrels.
Elsewhere, Brent’s premium to the WTI crude contract perched at 26 cents per barrel, compared to a gap of 18 cents by Wednesday’s close of trade.
For the first time since January earlier this week, the WTI crude futures momentarily flipped to a premium compared to Brent, as the U.S. crude is more influenced by the output disruption in its neighboring country, Canada.