The price of Brent rose to a five-month high above $45 a barrel.

This comes after a United States industry data showed a decline in the nation’s stockpiles. This also means that the price of Brent has increased for a fourth day to as much as 4.1%, which is the highest price since the beginning of March.

Oil prices were historically low at the beginning of the year due to measures taken by several countries across the globe to curb the spread of coronavirus. The prices got to negative figure at a point but have gradually been rising after the Organisation of Petroleum Exporting Countries and their allies (OPEC+) cut production historically by 9.7 million barrels a day to help solve the problem of low demand.

The international benchmark is said to have surpassed its low from March in European trading hours, closing a price gap that was formed on that day. West Texas Intermediate (WTI) also rose above its 200-day average for the first time since January this year.

Although there have been positive recovery signs for the market in the past few days, the rising coronavirus cases globally with a not yet 100% verifiable cure for the virus throws the certainty of the steady recovery of the market in a cloud of dust. Countries have lifted restrictions and are gradually opening up their economy but the negative impact already left on the market by the pandemic will take a while to recover from.

Furthermore, there are signs that the OPEC+ reduction of its global supply cut after its first batch of cuts lasted for three months, persistently weak dollar and equity markets recovery is helping the global market to stabilise.

Last week, The American Petroleum Institute reported a drop in crude inventories by 8.59 million barrels. A survey by Bloomberg shows that the crude stockpiles in the United States probably fell by 3.35 million barrels last week, which indicates a third week of decline if the figures are confirmed later this week when the Energy Information Administration (EIA) releases the official data.

The Head of oil markets at Rystad Energy AS, Bjornar Tonhaugen said, “Oil prices are rising, pricing in what looks like a sizable decline in U.S. crude inventories.”

Another analyst at StoneX Group, Kevin Solomon said, “I am not so sure if Brent will maintain its consolidation above the $45 level.”

These are good signs for the global oil market and it is hoped that the gradual increase until it gets to the internationally set benchmark before the pandemic, comes to stay.