A rise in global oil prices has petered out after briefly reaching a three-month high this morning.
International standard Brent crude reached prices of $66.79 per barrel at around 8.30am, but has since given back some gains
The price of the sweet light oil dipped below the $66 line at around 10.30am, but has since rebounded to $66.26.
The benchmark is continuing a five-day winning streak after producers’ cartel Opec announced further output cuts last week.
The group’s biggest member Saudi Arabia said it would reduce its exports by a further 500,000 barrels per day to 9.8m.
This morning’s rise helps puts Brent on track for its best first quarter in eight years, having gained 22.5 per cent since the end of December.
“Our numbers […] tell us that we are looking at the tightest first half crude balance in many years and, as such, a certain degree of price support does simply make sense for the time being,” JBC Energy said.
This morning the US standard West Texas Intermediate (WTI) rose 0.71 per cent to $56.38.
Meanwhile, uncertainty around US President Donald Trump, Brexit and oil production in Libya and Venezuela are further impacting markets, PVM Oil Associates analyst Tamas Varga told Reuters.
“Latest available data, however, point in the direction of a tightening market. It is not recommended to swim against the current and presently the ‘oil’ river is flowing north.”