Oil Futures Set for Longest Run of Gains in 5 Years

Oil Futures Set for Longest Run of Gains in 5 YearsOil Futures Set for Longest Run of Gains in 5 Years

Oil is set for the longest run of monthly gains in five years, as output disruptions from Nigeria to Canada reduce supply before OPEC's meeting on Thursday in Vienna to discuss production policy.

Futures gained as much as 0.9% in New York, set for a fourth monthly advance, while militant attacks have cut Nigerian supply to the lowest level in more than two decades, Bloomberg reported.

Oil has surged more than 85% since slumping to a 12-year low in February on signs the worldwide surplus is easing amid declining production from the US to Nigeria.

OPEC is unlikely to reach any agreement to limit output when it meets June 2, as the group sticks with Saudi Arabia’s strategy of squeezing out rivals, according to analysts surveyed by Bloomberg.

“Consolidation on the supply side has paved the way for the recovery of the oil price, and with oil production in the US likely to fall further over the coming year, more of the same awaits,” said Jens Pedersen, senior analyst at Danske Bank.

“In the near term though, the rising dollar should limit further upside to the oil price.”

While Canadian output fell amid wildfires, producers are starting to resume operations after the blaze eased.

Libya’s Petroleum Facilities Guard captured a town near the Es Sider and Ras Lanuf oil-loading terminals after fierce clashes with the self-styled Islamic State militants.

West Texas Intermediate for July delivery rose as much as 44 cents to $49.77 a barrel on the New York Mercantile Exchange and was at $49.42. There was no settlement on Monday because of the US Memorial Day holiday.

Brent for July settlement was at $49.32 a barrel on the London-based ICE Futures Europe exchange after rising 0.9% on Monday. Prices are set for a fourth monthly increase, also the longest streak since 2011.