Oil jumped early on Friday with Brent rising beyond $50 per barrel as investors braced themselves for more price hikes this year in anticipation of a tighter market.
International Brent crude oil futures rose 33 cents from its last settlement at $50.04 per barrel, while U.S. WTI crude rose at $48.61 a barrel by 28 cents.Traders say that the lifted prices were a consequence of a tight market, in which the oversupply hampering oil prices from 2014-2016 is now being rebalanced.
Investors are now putting their money into commodities as more easing of monetary policy is anticipated due to the slowing economy of Asia and the Brexit vote. Prices were also propped up by physical markets.
The material has been provided by InstaForex Company – www.instaforex.com