Brent oil futures climbed above 50 dollars a barrel on Thursday for the first time in nearly seven months. This is an indication that the global supply glut that plagued the market for nearly two years is showing signs of easing.

Oil prices had rallied in recent weeks after a string of outages due mainly to wildfires in Canada and unrest in Nigeria and Libya. The outages had knocked out nearly four million barrels per day of production. Above 50 dollars a barrel, oil was seen by many market players as breaching a psychological barrier that could lead producers, particularly among U.S. shale companies to revive operations scrapped in recent years.

Global benchmark Brent crude oil LCOc1 was up 36 cents at 50.10 dollars a barrel, the highest in nearly seven months. The upsurge was due to a larger-than-expected draw in U.S. crude oil inventories last week indicated buyers are starting to mop up spare supply. U.S. crude futures CLc1 were up 29 cents at 49.85 dollars a barrel, after touching 49.97 dollars, the highest since mid-October.

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