Tighter supply forecast boosted oil price

Oil prices surged more than $1 per barrel on Thursday, with Brent reaching its highest level since 27 October 2023, in response to ongoing attacks on Russia's energy infrastructure, OPEC+ likely to stick with its production cuts, and a decline in the number of US rigs restricting the supply of crude oil.

A Fed governor stated on Wednesday that inflation data further supported the need for the US Federal Reserve to postpone lowering its short-term interest rate target, although did not rule out doing so later in the year. Lower interest rates often boost oil demand.

Brent futures increased by $1.39, or 1.6% to settle at $87.48/barrel.

WTI rose by $1.82 or 2.2% to settle at $83.17/barrel.