Oil prices have reached the highest levels in more than two and half years due to tensions in Iran and ongoing output cuts by OPEC and Russia.

Oil markets were lifted by the strong performance of Asia’s stock markets, which jumped following positive data from the US, Japan, and Germany.

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US West Texas Intermediate (WTI) crude futures increased by 49 cents, or 0.8%, trading at $62.12 a barrel, after touching $62.17, their highest level since May 2015, according to Reuters.

Brent crude futures rose 29 cents, or 0.4%, trading at $68.13 a barrel after hitting a May 2015 high of $68.19.

Freezing weather in the US has contributed to the growth in demand, especially for heating oil.

Australia’ Rivkin Securities investment analyst William O‘Loughlin was quoted by the news agency as saying: “The market is clearly getting more bullish on oil as inventory levels get closer to the five-year average.

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“The continued Iranian protests have triggered off a ‘what if’ reaction in an already extremely skittish oil market.”

“Geopolitical uncertainty in Iran, OPEC’s third-largest producer, is also helping to support the price as citizens are again protesting the government.”

However, civilian protests against the Iranian Government have not affected the country’s oil output.

Energy consultancy Trifecta director Sukrit Vijayakar was quoted by the news agency as saying: “The continued Iranian protests have triggered off a ‘what if’ reaction in an already extremely skittish oil market.”

Vijayakar added that as Iran’s oil resources are not located close to major residential areas, the unrest does not significantly disrupt supplies.

Meanwhile, as per the data released by the American Petroleum Institute, crude oil inventories in the US fell by five million barrels in the week to 29 December to 427.8 million barrels.

However, rising US production continues to threaten efforts by the OPEC and Russia to tighten the market.