LONDON: Oil prices hit new 2016 highs Monday, as a slowdown in US drilling added to growing expectations the global supply glut will gradually disappear.
Brent North Sea crude reached $48.90 a barrel and US benchmark West Texas Intermediate (WTI) achieved $47.19 -- the highest levels since early November.
Later around 1030 GMT, WTI for delivery in June stood at $47.05, up 84 cents compared with Friday's close.
Brent for July jumped 93 cents to $48.76.
US oilfield services firm Baker Hughes said that the number of US drilling rigs fell to its lowest level since October 2009, handing a further boost to prices.
Crude futures had already rallied last week after advisory-group the International Energy Agency said the world oil supply glut could ease in the second half of this year, and as the OPEC oil producers said the oversupply "may be easing" on reduced output by its members.
EY oil and gas analyst Sanjeev Gupta said the market will be closely watching the release on Wednesday of US commercial crude inventories, a gauge for demand in the world's top oil consumer.
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