Brent Oil Climbs to More Than $50 per Barrel

Brent Oil Climbs to More Than $50 per Barrel

On Thursday, Brent oil futures scaled more than the$50 mark per barrel for the first time in almost seven months. It got a push after the figures from the U.S. government revealed a more than expected drawdown last week in the crude stocks.

The oil prices were also supported by the upbeat stock markets as the Dow Jones industrial average, the S&P 500 and the Nasdaq Composite, all scaled overnight.

Brent LCOc1 had ended the earlier session $1.13 or 2.3 percent up and climbed 31 cents to $50.05 per barrel by 0225 GMT. That was its highest since November 4, 2015.

Even the U.S. crude futures scaled 23 cents to reach its highest since October 12 at $49.79 per barrel. In its last session it had settled 94 cents higher.

Ric Spooner, chief market analyst at Sydney's CMC Markets said "Certainly ($50) is a psychological barrier. There is a momentum, people will try and push it up over that. (From a) practical point of view will there or will there not be a sustainable increase above $50? At the $50-$55 range there has got to be a good chance of seeing the peak."

According to him there was still an oversupply of oil in the global market even as the demand has increased with a supply disruption caused by Canadian wildfires and violence that broke out in Libya and Nigeria.