Oil surges to 4-month high as supply optimism rises

Oil prices kept rising as the US market was opened on Thursday, to widen its gains for the fourth day in a row, recording its highest levels in four months, as concerns over the US supply slump eased after an unexpected drop in the commercial inventories and a slowdown in oil production for the first time since December.

As of 12:50 GMT, American crude rose to $58.55 per barrel, over the opening at $58.35, recording its highest levels since 13th of November at $58.65 and a low of $57.99.

While the Brent crude rose to $67.95 per barrel from the opening level of $67.62, and recorded a high of $68.12 since November 16th and a low of $67.35.

US crude gained 2.2% on Wednesday, the third daily gain, after the weekly report of EIA, and Brent contracts also rose 1.2%, as OPEC's efforts continue to support the market.

U.S. Energy Information Administration (EIA) announced yesterday that the country's trade inventories fell by 3.9 million barrels in the week ending March 8, contrary to experts' estimates of a rise of 2.7 million barrels, the second decline in the last three weeks.

For the US production levels, last week fell by about 100,000 barrels per day, the first weekly decline since the week ending December 7, bringing the total to 12 million barrels per day, leaving its record level of 12.1 million barrels.

In addition to easing the supply concerns in the United States, "the world's largest consumer and producer of oil," there is also support for high oil prices at the moment, with OPEC and Russia continuing to balance the market, as well as US sanctions against Venezuela and Iran.