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International benchmarks for oil prices surged to new 2016 high on Monday (16 May) after Goldman Sachs said the market faces a short-term supply deficit due to production outages. The global supply glut has narrowed in recent weeks as production disruption in the Canada, Nigeria and Libya curbed supply while demand remains relatively strong. Production output in the US has also declined as weak oil prices forces companies to cut down investment on new drilling. However, Goldman gave a muted outlook beyond the rest of 2016, saying strong output in Iraq and Iran, among other factors, would shift the market back into surplus in the first quarter of 2017, keeping prices at $45/barrel.

WTI closed at $47.72/barrel (+$1.51) June delivery 
Brent closed at $48.97/barrel (+$1.14) July delivery