Oil prices are advancing again, one day after the recently volatile market officially re-entered bull territory.
Buoyed by an unexpected fall in US crude stockpiles and hopes of an Opec production cap, the price of a barrel of Brent crude for October delivery has gained 21 cents this morning to $51.13 – its highest level since the UK voted to leave the EU on June 23.
Brent has climbed 23 per cent since hitting lows of $41.51 at the start of August – exceeding the 20 per cent threshold that officially denotes bull market territory. It is enjoying its best week since late April, climbing for seven consecutive sessions.
West Texas Intermediate, the US benchmark, has advanced 0.8 per cent, or 40 cents, to $48.62 at publication time – a six-week high.
Prices have been supported by recent weakness in the dollar, renewed hopes of a global production cut brokered by Saudi Arabia and Russia, and hedge funds, which have reversed their short positions on the commodity.