Brent crude hits 2016 high of US$40 as oil extends gains

[LONDON] Oil prices rallied again on Monday, with Brent hitting this year's high of US$40 a barrel, after intelligence firm Genscape reported a smaller build in stockpiles at the Cushing, Oklahoma delivery hub for US crude futures, traders who saw the data said.

The front-month in Brent, the global crude benchmark, was up US$1.20 at US$39.92 by 10:19 am EST (1519 GMT). It earlier hit a 2016 high of US$40.

US crude futures' front-month contract was up US$1.13 at US$37.05 a barrel.

Genscape said Cushing stockpiles rose by 670,714 barrels to reach 68.8 million during the week ended March 4, traders who saw the data said. In the previous week to Feb 26, Genscape reported that inventories at the hub rose by more than 1 million barrels.

REUTERS