US crude oil jumps above $51 for first time in 4 months

Oil prices were trading at multi-month highs on Monday, continuing a rally that brought Brent crude within $1 of its 2017 high.

International benchmark Brent crude rose 77 cents, or 1.4 percent, to $57.63 by 9:21 a.m. ET. That is near the highest level since January 3, when Brent hit a 2017 peak of $58.37.

U.S. West Texas Intermediate crude remained about $4 below its 2017 high, but topped $51 a barrel for the first time in four months. It was last trading up 60 cents, or 1.2 percent, at $51.26.

OPEC and other oil exporters declined on Friday to extend their agreement to limit production in a bid to drain a global glut that has weighed on prices for three years. However, some analysts believe it's only a matter of time before the cartel agrees to an extension.

"The market anticipates that OPEC are going to continue with their production cuts through 2018," said Andy Lipow, president of Lipow Oil Associates.

However, analysts warned that exporters whose budgets are dependent on oil revenues will be tempted to pump above agreed-upon levels as Brent crude nears $60 a barrel.

Source: Bloomberg Pro Terminal

Junior Trader Stefan Panteleev

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