Oil prices have reached a 2016 high to $43 a barrel due to an upcoming meeting of oil producers to freeze supplies, as well as a weak US dollar and strong demand from China.
In addition to OPEC members and other oil producing countries not part of OPEC such as Russia will meet at Doha, Qatar, this month to discuss plans to freeze output, reported Reuters.
Furthermore, the value of dollar has dropped to its lowest level in last eight months against several currencies, which has lent support to commodities.
Brent crude increased by 50 cents to touch $43.33 a barrel while US crude grew 39 cents to reach $40.75 a barrel.
Eugen Weinberg of Commerzbank was quoted by the news agency as saying: "The weak dollar is one important reason.
"Also, the fact that we are above $40 and at multi-month highs is also contributing to the price increase as it is prompting some speculative buying."
Increasing vehicle sales in China has led to a further demand for strong gasoline.
In addition, thousands of oil and gas workers in Kuwait are intending to go on strike from Sunday.
Petromatrix analyst Olivier Jakob was quoted by Reuters as saying: "If it is not clear if the strike will last long and will have any meaningful impact on exports or domestic production (including refineries), it does illustrate further the amount of pain that (Gulf) oil producers are also facing at current price levels."
In mid-2014, the oil price reached above $100, but has since been dropping due to excess supply.
