LONDON: Oil prices jumped to their highest level in eight months yesterday, rising for a third consecutive session on supply disruptions in Nigeria and strong Chinese demand data. There was also a larger-than-expected drop in US crude inventories on Tuesday, indicating an easing of the global supply glut. A weak dollar, which hit a five-week trough against a basket of currencies yesterday, also boosted prices. "The market sentiment is positive; the trend and the momentum points to further gains," said Carsten Fritsch, commodities analyst at Commerzbank.

Brent crude futures rose to the highest level since last October at $52.24 a barrel. They were up 67 cents at $52.11 a barrel at 1042 GMT. US crude futures were up 65 cents to $51.01 a barrel, after reaching $51.12, their highest since last July. Supply disruptions caused by a string of attacks by the Niger Delta Avengers militant group in Nigeria have brought the oil exporter's production to its lowest level in 20 years. The group said yesterday it had attacked another oil well owned by US oil group Chevron, adding to assaults on oil infrastructure owned by Shell and ENI. Nigerian Oil Minister Emmanuel Ibe Kachikwu said output had dropped to 1.5-1.6 million barrels per day (bpd), down from 2.2 million at the start of the year.

At the same time, May trade data on yesterday showed the biggest jump in China's crude oil imports in more than six years, adding to hopes that the economy of the world's second-largest oil consumer may be stabilizing. "China's economic activity is not slowing down as much as expected, which is a support to the market," said Kaname Gokon at brokerage Okato Shoji. - Reuters