Brent crude oil prices have breached the $75 a barrel mark, hitting their highest levels since November 2014, amidst signs of tightening supplies caused by rising demand.
The rise in Brent crude prices was registered for the sixth consecutive day.
Brent crude futures LCOc1 have jumped 36 cents, or 0.5%, to trade at $75.07 a barrel, while US West Texas Intermediate (WTI) crude futures CLc1 soared 53 cents, or 0.8%, to reach $69.17, according to Reuters.
Since the lowest levels seen in February this year, Brent prices increased more than 20%.
Markets have been supported by the ongoing output cuts enforced by the Saudi Arabia-led Organisation of the Petroleum Exporting Countries (OPEC) and expectations of renewed US sanctions against Iran.
Sanctions against Iran could impact global supplies and lead to a further rise in prices of crude futures.
ANZ bank was quoted by the news agency as saying: “Crude prices are now sitting at the highest levels in three years, reflecting ongoing concerns around geopolitical tensions in the Middle East, which is the source of nearly half of the world’s oil supply.”
Saudi Aramco, which is Saudi Arabia’s state-controlled oil firm, is supporting further rise in oil prices.
Rivkin Securities investment analyst William O’Loughlin was quoted by the news agency as saying: “Oil strength is coming from Saudi Arabia’s recent commitment to get oil back up to between $70 to $80 per barrel, as well as inventory levels that are back in the normal range.”
Despite the continuing rise in oil prices, US production is keeping a lid on further increase.
In terms of production, the US is only second to Russia, with output currently at more than 10.54 million barrels per day.