Oil hits 4-month high as stocks hold at record peaks

Oil prices have hit a four-month high after data showed supplies increased less than expected last week.

West Texas Intermediate climbed by almost six per cent on the New York Mercantile Exchange to trade above the $56 handle, while Brent crude was up three per cent at $63 a barrel.

This came after the US Energy Information Administration said crude oil inventories rose by 1.3 million barrels last week, short of the expected figure of 4.1 million.

Meanwhile, the euro was steady around a one-week high against the dollar as weak industrial output figures from the US weighed on the greenback.

However, the single currency was held in check as the European Central Bank confirmed it will fully implement its trillion-euro stimulus package.

ECB president Mario Draghi played down suggestions that signs of recovery in the eurozone would see the bank dial back its bond-buying programme early.

He said the month-old stimulus package was “proceeding smoothly” and that "purchases are intended to run until the end of September 2016”.

Equities continued to find support from the loose monetary policy of central banks, with the Shanghai index rising to a fresh seven-year peak, while European stocks were trading at their highest levels in 14 years.

The FTSE was near an all-time high around the 7,100 handle, while the Dow Jones and S&P 500 remain close to their recently-struck record peaks.