Brent crude has marched to its highest level in five months.
The global oil benchmark advanced as much as 4 per cent to $45.82 — its highest intraday level since last November. Meanwhile, West Texas Intermediate, the US crude marker rose 3.7 per cent to hit an intraday high of $42.61 a barrel, the strongest reading since November 30.
Oil has had a tumultuous week. First, talks on an output freeze between major oil producing nations in Doha fell apart with no agreement on Sunday, sending crude prices sharply lower. But a strike by oil workers in Kuwait, which resulted in a sharp drop in output, briefly supported crude prices. News that the strike had ended weighed on the black stuff early on Wednesday.
But by mid-morning, oil turned positive after a report from the US Energy Information Administration showed a decline in US crude production, a smaller-than expected build in stockpiles of US crude and strong demand for diesel.
Brent crude is now up 5.5 per cent for the week, while WTI, has gained 5.3 per cent so far this week.