Oil hits new multi-month highs, Brent regains $ 50

Oil benchmarks on both sides of Atlantic prolong the bullish streak into a third-day today, with Brent climbing above $ 50 mark for the first time since November.

Oil jumps on bullish EIA report, weaker USD

Currently, both crude benchmarks extend to the upside, with Brent up +0.78% at $ 50.13, while WTI oil jumps +0.69% to $ 49.90. Oil prices keep the bid tone intact as the underlying fundamentals turn favourable, with the US crude production having dropped to the lowest levels since Sept 2014.

Moreover, the latest EIA weekly inventory report showed that the US crude stockpiles fell by 4.23 million barrels to 537.1 million in the week to May 20, the steepest weekly drop in seven weeks, and against forecast a fall of only about 1.64 million barrels. While crude supplies at the Cushing, Oklahoma delivery hub fell by 649,000 barrels to 67.6 million barrels last week.

Furthermore, the ongoing weakness in the US dollar against its major peers largely on the back of a profit-taking slide also collaborates to the upbeat sentiment around the black gold. Looking ahead, the immediate focus remains on the US macro data due later in NA session ahead of Friday’s US rigs count data and Fed Chair Yellen’s speech. While June 2 OPEC meeting in Vienna remains the main highlight for oil markets.