Oil futures staged a resurgence on Monday, jumping more than 3% as traders heralded the recent news of a supply shortfall, according to Bloomberg MarketWatch.
On the New York Mercantile Exchange, June West Texas Intermediate crude gained $1.40, or 3.3%, to $47.72 a barrel. That was the highest settlement since early November.
July Brent crude, the global benchmark, rose $1.14, or 2.4%, to settle at $48.97 a barrel on London’s ICE Futures Exchange.
“Soaring demand, in part caused by low prices and falling non-OPEC oil output, is sending oil back on an upward trajectory,” said Phil Flynn, senior market analyst at Price Futures Group. “This comes as the U.S. oil rig count plunges for the eighth week in a row.”
Goldman Sachs attributed the utilization of surplus storage due to the Fort McMurray wildfire in Canada coupled with global outages in Nigeria and Libya.
“They are starting to realize that the line between an oversupply and a deficit is a lot thinner than people think,” said Flynn.
Meanwhile, June natural gas ended at $2.029 per million British thermal units, down 6.7 cents, or 3.2%.