Crude oil prices jumped above the $50 per barrel mark today, after a monthly energy report suggested supplies are set to fall in the UK and global markets.
The US Energy Information Administration's short-term energy outlook said that oil demand from China and the emerging markets will grow, while non-OPEC supply stalls.
Brent, the global benchmark for crude, rose 4.8 per cent to $51.65 per barrel this afternoon. This was its highest level in a month.
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West Texas Intermediate, the US crude benchmark, rose by $1.95, or 4.2 per cent, to $48.21.
Oil prices were already receiving support from reports that Russia was open to talks about the state of the market with Organization of Petroleum Exporting Countries (Opec) and non-Opec members.
"The market is possibly moving on speculation that OPEC and non-OPEC countries will find an agreement to cooperate," Carsten Fritsch, senior oil analyst at Commerzbank, said.
Another supportive factor is the weakening greenback, which drives demand by making oil cheaper for buyers who are using other currencies.