US Crude Tops $50

West Texas Intermediate crude futures are on track for a near 5.00% gain this week, spurred by the return of refinery operations after Hurricane Harvey forced them to shutter.

The demand outlook for oil has also brightened considerably after the Organization of the Petroleum Exporting Countries pointed to signs of the global supply glut shrinking on the heels of reduced production from OPEC and non-OPEC countries.

The US oil benchmark got an extra boost on Thursday after an electrical fire at Canadian Natural Resource’s Horizon oil sands project. While a spokesperson for the company said output was not affected, physical markets in North America nonetheless surged following the report.

US crude futures spiked to as high as $50.49 a barrel on Thursday, before pulling back below $50.00 in thin Friday trading.

The Bank of England gave its clearest signal to date that the UK’s first interest rate hike in a decade is approaching after the Central Bank said it was likely to raise rates in "the coming months" if the economy and price pressures continue growing.

Data released earlier this week showed prices gaining faster and unemployment slipping to a four-decade low. The BoE remarked that the economy was closer to running at full capacity amid rising employment and higher wages, which in turn had increased inflationary pressures.

As was widely expected, policymakers at the bank voted 7-2 to keep interest rates unchanged at a record low 0.25%.

However, the new hawkish guidance pushed the sterling to a one-year high against the US dollar, with the GBPUSD pair currently trending around 1.3410.