Oil prices jump

Reuters

Singapore

Oil prices jumped over 1 percent on Monday after long-time bear Goldman Sachs said the market had ended almost two years of oversupply and flipped to a deficit following global oil disruptions.

Brent crude futures were trading at $48.47 per barrel at 0703 GMT, up 64 cents, or 1.3 percent, from their last settlement.

U.S. crude futures were up 62 cents, or 1.3 percent, at $46.83 a barrel.

Supply disruptions around the world of as much as 3.75 million barrels per day (bpd) have wiped out a glut that pulled down oil prices by as much as over 70 percent between 2014 and early 2016.

The disruptions have now triggered a U-turn in the outlook of Goldman Sachs, which long warned of overflowing storage and another looming price crash.

"The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected," Goldman said.