Oil prices surged on Thursday

International benchmarks for oil prices surged to the new 2016 high on Thursday (12 May) after the IEA report boosted market optimism for an faster than expected easing global glut. In fact, the IEA said global oil stocks will experience a dramatic reduction in the second half of the year while warning that more supply will come in the first half of the year as Iran ramp up production output. Many traders already see the market in the rebalancing mode, the WSJ reported as demand worldwide remains solid.

WTI closed at $46.70/barrel (+$0.47) June delivery

Brent closed at $48.08/barrel (+$0.48) July delivery