Oil prices have surged to pre-Brexit levels amid fresh hopes that an upcoming meeting of energy producers could ease production levels in a bid to support floundering prices.
Brent crude touched as high as 51.19 US dollars (£39.02) per barrel on Friday morning, its highest level since the EU referendum when it touched 51.16 US dollars (£39) per barrel.
The commodity’s price surge marks the seventh straight day of gains, or an 11% rise for the week alone.
“The black stuff’s recent rise puts it back in bull market territory,” said Connor Campbell, a financial analyst at Spreadex, referring to a market phenomenon defined as an asset’s 20% rise from recent lows.
Investors are optimistic that members of the Organisation of the Petroleum Exporting Countries (Opec) could agree to a production freeze during the fifth annual International Energy Forum Ministerial Meeting due to be held in Algeria in late September.
However, hopes for a similar agreement earlier this year have been dashed with big producers like Saudi Arabia failing to agree to a deal.
“Investors shouldn’t be optimistic given past experiences. In our view, we’re not expecting any miracles,” said Amrita Sen, chief oil analyst at Energy Aspects.
Mr Sen said prices have also risen on the back of supply disruptions in oil- producing nations including Nigeria and Angola.
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