There was also a larger-than-expected drop in US crude inventories on Tuesday, indicating an easing of the global supply glut.
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However, strong overall demand for oil especially from refineries, as well as supply disruptions, were helping to keep prices from falling faster and further.
Brent crude futures were up 36 cents on the day at $50.91 a barrel by 1339 GMT, having hit an intraday peak of $51.30 earlier in the day, their highest since October.
Also commenting, Dominick Chirichella, senior partner at the Energy Management Institute in NY said: “The market remains concerned about unscheduled supply interruptions with the latest coming from additional shut-ins in Nigeria”.
According to a source, Nigeria’s Bonny Light crude output is down by an estimated 170,000 barrels per day (bpd) following attacks on pipeline infrastructure.
Rebel attacks on oil installations cut Nigeria’s production by 160,000 barrels a day, or 10 percent, to 1.45 million a day in May, contributing to a drop in monthly output from Opec, according to a Bloomberg News survey.
The dollar fell to the lowest level in five weeks against a basket of currencies, hurt by waning expectations that the Federal Reserve will raise interest rates anytime soon.
Oil has surged more than 90 per cent from a 12-year low in February amid unplanned disruptions and a steady slide in USA output, which is under pressure from the Organization of Petroleum Exporting Countries’ policy of pumping without limits.
Consultancy JBC Energy said it had increased its 2016 oil demand growth outlook to above 1.4 million barrels per day, largely on increased US gasoline consumption. USA crude hit a fresh high of $51.67 and was up 33 cents higher at $51.56 a barrel.
Unplanned supply outages in Canada, Venezuela, Libya and Nigeria, as well as a steady reduction in USA shale production, have helped oil prices to almost double since February – when they hit the lowest level since 2003. “Secondly Nigeria’s crude is light and sweet and thus of a comparable quality to Brent crude”.
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The market inched higher after Chinese trade data showed that its exports fell more than expected in May, but imports beat forecasts, adding to hopes that the economy of the world’s second-largest oil user may be stabilising.
