Brent crude futures were trading at $48.95 per barrel and U.S crude has climbed to $48.49 a barrel.
There has been a lot of pessimism among oil investors over the last few months and with the Brexit vote oil dropped to 7 week low. However this effect has been short lived as it has become clear this will have little effect on market demand.
With the possible strike in Norway likely to hit production and the decrease in Venezuela oil production it is likely that the price of oil will continue to climb towards the $50 per barrel mark.
Venezuela?s oil industry is in deep trouble as their economic crisis is hitting them hard, and with shortages of spare parts and low morale of work force things look set to get worse.
It is expected that petrol prices in the UK will rise by at least 10p per gallon within the next few weeks as oil production reduces and with the fall in the strength of the pound.
oil price set to rise and petrol prices
The rise will not be as pronounce as it could be because fuel duty accounts for 57.95p per litre which makes it around 50% of the petrol price.