Oil hits $50 per barrel ahead of UK growth figures – business live

Brent crude has risen to its highest level of 2016, as investors wait to see how Britain’s economy fared in the last quarter

Oil prices jump
The agenda: UK GDP figures may show Brexit damage

9.00am BST

Shares in miners and oil producers are rallying this morning, following the jump in the oil price.

The sight of Brent crude nudging over $50 per barrel is boosting confidence in the City, while a weakening US dollar is pushing up other commodity prices too.

Energy and Mining stocks are topping the FTSE this morning with gains of 2-3% after Brent Crude broke back above the symbolic $50/barrel 6-month highs overnight and an easing in US Dollar strength benefits the greenback-denominated raw materials space as a whole.

Sceptics will point to the breakout by oil – inspired by a drop in US oil stockpiles on top of falling US output and global supply problems – as likely attracting shale/frackers back to idle rigs.

8.28am BST

Japan’s PM, Shinzo Abe, has apparently warned G7 world leaders that we could suffer a crisis on the scale of Lehman Brothers in 2008.

That’s according to the Nikkei news agency

Japan’s Abe Warns Of Lehman-Magnitude Crisis – Nikkei

JAPAN PM ABE WARNS OF LEHMAN-MAGNITUDE CRISIS – NIKKEI – oh goody!

‘Lehman style’ is one of Abe’s favored rhetorical devices. Previously used as condition not to do sales tax https://t.co/7HwubCNvn5

Related: G7 summit: Juncker aide says Boris Johnson as leader is ‘horror scenario’ – live

8.26am BST

Here’s an example of the supply disruptions that has pushed the oil price up, from Reuters:

A Nigerian youth group leader confirmed on Thursday that militants had attacked a Chevron oil facility in the Niger Delta.

“The attack truly happened,” Eric Omare, spokesman for the Ijaw Youth Council, said.

7.53am BST

Oil prices have hit their highest level of the year, after figures showed that the long-running glut in crude prices could finally be eroding.

Brent crude, sourced from the North Sea, has jumped over the $50 per barrel mark.

$50 oil is back https://t.co/1FlvxKisbt pic.twitter.com/Bj7F5yttQD

“US oil inventories have largely topped out and should decline through the summer.”

7.39am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

We get a proper insight into the state of Britain’s economy this morning, when the second estimate of GDP for the first quarter of 2016 is released, at 9.30am.

Private consumption growth is once again expected to make the main contribution to total growth with net trade likely being a drag. Expectations for business investment will also be muted given that the approaching EU referendum became a more high profile source of uncertainty during the period.

PM Abe welcomed #G7 leaders to Ise Jingu at start of the Ise-Shima Summit https://t.co/nsFjIsOiib pic.twitter.com/Mck6t92p7f

Oops pic.twitter.com/1ie3Zmka45

Continue reading…