Oil prices reach six-month high on latest surge

William Turvill
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Oil Prices Hit Historic High On Weak Dollar
Oil prices are currently at a six-month high (Source: Getty)

Oil prices continued to surge on Tuesday, reaching a six-month high.

The price of a barrel of Brent Crude reached just short of $49.50 on Tuesday morning.

Meanwhile, US benchmark West Texas Intermediate (WTI) is also approaching the $50 mark.

Read more: Oil prices soar to six-month highs in wake of global supply disruptions

Oil prices are currently at a six-month high after being lifted this week by disruptions to output in Nigeria and a bullish assessment on the market from the usually bearish Goldman Sachs.

US prices soared to a 2016 high last week following a surprise drop in oil stocks and the effects of wildfires in Canada’s oil-producing regions.

Political tension in Venezuela also helped to boost prices.

Read more: Oil prices slump as strong dollar hits demand

"The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected," Goldman Sachs said yesterday.

"The market likely shifted into deficit in May ... driven by both sustained strong demand as well as sharply declining production.”

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