Oil hits six month high on hopes of a US recovery
OIL prices hit a six-month high yesterday, as the cost of a barrel hit $60 (£48), on hopes that the US economy was on its way to recovery.
US crude rose as high as $60.05, while London Brent crude went up to $59.22, although both later dropped back.
Earlier this week, oil prices were sharply up as attacks on oil facilities in Nigeria led to fears of a supply shortage.
The price of the commodity is slowly rising from the lows of $32 a barrel in January, but has yet to hit the highs seen last summer, when oil touched $147 per barrel.
Better-than-expected reports from US retailer Lowe’s reinforced hopes for a recovery, triggering the hike in oil prices.
The US is a major export market for many countries. When there is strong internal demand, sparked by a strong economy, it benefits the oil price.