The price of Brent crude surged above $59 a barrel amid volatile conditions in the Middle East and the indication of a fall in US production.
While front-month Brent crude futures LCOc1 grew 68 cents to reach $59.11 per barrel, the US crude futures CLc1 rose 70 cents to $53.99, reported Reuters.
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The price of oil to a large extent was supported by tensions in the Middle East, especially Yemen.
A campaign of air strikes, backed by Saudi against Houthi rebels, which has support from Iran, has threatened to turn into a volatile situation. Egypt has also discussed military action with Saudi Arabia and other Gulf allies against the rebels.
In the US, the oil production in February from North Dakota dropped by 15,000 barrels per day (bpd) compared to January, even though several producing wells had achieved a record high.
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This news was followed by an Energy Information Administration report, which predicted that the US shale production would drop by 45,000bpd to 4.98 million bpd in May, making it the first monthly drop in four years.
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By GlobalDataThe IEA predicted that the oil market is likely to take a longer time than expected to tighten, as supply is growing faster than demand.
OPEC production grew to 31.02 million bpd in March.
