Oil is on track for its biggest monthly gain in seven years, boosted by a weak dollar and a decline in US production that has helped to ease concern about a persistent supply glut. Brent crude, the international benchmark, has gained over 22 per cent in April — up more than 70 percent from its January lows. The US marker, West Texas Intermediate, has recorded a similar increase this month. The rebound in prices has come as investors position themselves for the biggest decline in non-Opec supply in 25 years and what they hope will be a more balanced market later in the year.
“Fresh year-to-date highs have been this week’s predominant theme,” said Tamas Varga at London-based oil broker PVM. “The relentless march higher continues.” On Friday, Ice June Brent traded as high as $48.50 a barrel before paring gains to trade at $47.94. Nymex June WTI dipped 17 cents to $45.85 a barrel after hitting $46.78 earlier in the day. Both oil markers hit their highest levels since November on Friday morning, having rebounded more than 70 percent from 13-year lows reached earlier this year.