Graph Up: Oil hits $50 a barrel for first time this year

Graph Up: Oil hits $50 a barrel for first time this year


The price of petroleum has gone above $50 a barrel for the first time in 2016 as increased worldwide demand and supply disruptions continue to fuel a restoration.

The standard Brent crude price reach $50.07 a barrel in Asian trade.

US data was followed by the rise demonstrating that petroleum stocks had dropped, mainly as a result of supply disruptions following fires in Canada.

US crude oil inventories dropped by 4.2 million barrels to 537.1 million barrels in the week to May 20, according to US Department of Energy data.

Canada is the biggest provider to the US and wildfires in the western states have knocked out about a million barrels a day.

Talks in recent months between Russia and Opec about freezing oil production had already helped costs recover.

Short term disruptions to oil supplies also have lifted the price, as they’ve offset higher production.

Attacks by militant groups continue to confine oil pipelines, along with the disruption to essential oil production facilities in Canada.

Demand has additionally been better than expected from leading economies for example Russia, India and China.