Oil prices have almost doubled since January
Oil prices have risen above $58 a barrel amid fears that attacks on oil facilities in Nigeria could lead to shortages in oil supply.
US crude rose by $1.82 to $58.16 a barrel, while London Brent crude was up $2.02 to $58.00.
Analysts also said last week’s slide in oil prices had been overdone.
Oil has jumped from $32 a barrel in January on hopes for an economic recovery, but it remains well below the record high of $147 touched last July.
Crude oil prices dropped 4% last week after some US data suggested that the world’s largest economy was not recovering as fast as some had hoped.
Reports last week showed that US retail sales had unexpectedly dropped last month and industrial production had fallen for the ninth month, leading traders to sell oil.
“There was quite a pullback on Friday and it might have been a bit overdone,” said Rob Montefusco, a broker at Sucden Financial. “The whole Nigerian situation is quite supportive at the moment,” he added.
Oil prices picked up after militants in Nigeria, Africa’s leading oil producer, attacked two oil pipelines in the southern Niger Delta.
Oil has been rising in response to a global rebound in stock markets over the past two months.