Oil prices continued their ascent on Friday amid signs of supply cuts. Brent, the international benchmark, surged 4.1 per cent in recent trading to hit $58.23 a barrel. That equates to an 11.6 per cent rally this week, the highest since December 2016.

The oil market limped into 2019, after worries of a global supply glut sent prices swiftly tumbling into a bear market. Brent remains well below its high of nearly $87 a barrel, though prices have swung higher in recent sessions as traders reacted to data showing weaker Opec production and declining inventories.

Surveys conducted by Bloomberg and Reuters this week indicated that Opec, led by Saudi Arabia, reduced its oil output in December, before the start of planned production cuts this month. “Despite the demand-side concerns, oil has received some support as supply cuts announced by Opec begin,” said Dean Popplewell, vice-president of market analysis at OANDA.

Financial Times