Oil prices rose again yesterday as the commodity underpinning the north-east economy enjoys its longest rally in more than five years.
Benchmark Brent crude was up 71 cents to $49.48 a barrel by mid-afternoon, off a session low of $48.79. The price rose 5.2% last week for a first weekly gain in six.
The continued upward trend came after data pointed to moderating US output, although analysts warned rising production from members of producers’ cartel Opec could cap gains.
Yesterday’s rise marked an eighth consecutive session of gains, the longest unbroken advance since February 2012.
Oil prices are still down by more than 13% since the start of the year, with strong global demand insufficient to absorb rising output from the US, Nigeria, Libya, Brazil and the North Sea.
Markets are currently oversupplied after output from Opec hit a 2017 high.
Opec’s daily production in June was up by 280,000 barrels at 32.72million, despite the group’s pledge to hold back output, according to news agency Reuters.
Oil ministers from five countries monitoring the agreed production cut plus Saudi Arabia as Opec president are due to meet in Russia on July 24. They could make a recommendation to the wider cartel.
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