The price of a barrel of Brent crude rose to $108.68 (£70.72), near the level of $109.04 that it hit earlier this month which was the most since early April.

Experts say Brent prices could get a boost from ­growing demand and ­ supply risks in the Middle East and Sudan.

Chief global strategist at City Index Ashraf Laidi said that after four successive weeks of gains the price of Brent could hit $114.

Hedge funds also amassed record wagers on chances of rising US crude oil prices as export demand for oil from US Gulf Coast refineries increased leaving them ­running at 95 per cent capacity.

On Saturday the G20 nations pledged to put growth before austerity sparking hopes of a revival in demand for crude.

Rising steel output in China helped push global crude steel production up 1.9 per cent to 132million tonnes in June from a year ago but production fell in austerity-hit Europe.