According to a report by Bloomberg, oil prices have surged to their highest level in 5 months thanks to reduced stockpiles and hopes of more government stimulus efforts.

The American Petroleum Institute revealed that US inventories fell by 6.83 million barrels in the previous week, over twice as much as anticipated. This has contributed to the rise in oil prices, as it confirms an improvement in commodity demand.

Furthermore, investors are optimistic about increased government stimulus measures aimed at aiding the global economic recovery from the COVID-19 pandemic. The European Union recently approved a €750 billion ($858 billion) stimulus package, which is expected to include funding for renewable energy and infrastructure projects.

However, there are still concerns about the speed of the global economic recovery, as well as the potential impact of a second wave of COVID-19 infections on oil demand.