Market and product

World oil prices have just passed a key milestone on their long journey out of the doldrums, hitting $50 for the first time in six months.

Brent crude, one of three key benchmarks for global oil trade, stood at just more than $50 early on Thursday, while WTI crude futures were just short of the important psychological level, up 0.5% at $49.85.

Prices were pushed higher by a report published on Wednesday that said U.S. crude stocks had fallen by more than expected, suggesting market conditions could tighten further.

Meanwhile, supply disruptions in Canada, Nigeria and Venezuela are contributing to surging prices. Stronger demand from India, China and Russia has also played a role.

WTI crude was trading just above $26 a barrel as recently as mid-February, its lowest level since 2003.

Firmer prices are good news for OPEC countries led by Saudi Arabia. It means that their strategy to squeeze rival producers by pumping near-record amounts of crude despite the low prices may finally be working.

OPEC countries are due to meet next week in Vienna. A senior Gulf source said there was no discussion of a new bid to freeze production.