Oil Prices Soar Above $50 Amid Global Production Disruptions

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By Brendel Balaga

Oil prices surged to an eight-month high on Monday, after production in several countries were disrupted.

Over the weekend, a militant group called Niger Delta Avengers claimed responsibility for a series of new attacks on Nigeria’s oil infrastructure.

Meanwhile, Exxon Mobil reported an incident that involved a pipeline failure and spill at its refinery in Torrance, California.

Oil prices have gone up in recent weeks as investors capitalized on supply disruptions in Canada, Nigeria, Venezuela and France. The outages are seen as a temporary relief for a global market filled with unwanted oil.

In London, Brent oil for August delivery soared to an intraday peak of $50.78 a barrel. It was up 83 cents, or 1.67%, at $50.47 by 9:35AM ET.

Brent prices hit an eight-month high of $50.96 late last month worries about the supply glut was tempered by supply disruptions in Africa. Brent futures have recovered by roughly 85% since plummeting below $30 a barrel early this year.

In New York, crude oil for July delivery added 93 cents, or 1.91%, to trade higher at $49.55 a barrel after spiking to a daily high of $49.85.

U.S. crude futures have bounced back by nearly 80% since falling to $26.05 in February, the lowest in 13 years.

Meanwhile, Brent’s premium to the WTI crude contract went down to 92 cents a barrel, down from Friday’s $1.02 close.

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