Oil prices have continued their upward growth, reaching the highest level in almost two weeks after Asian equity markets registered gains.
US West Texas Intermediate (WTI) crude for March delivery CLc1 increased 57 cents, or 0.9%, to trade at $62.25 a barrel, while London Brent crude LCOc1 witnessed a hike of 38 cents, or 0.6%, to reach $65.22, according to Reuters.
Emori Capital Management CEO Tetsu Emori was quoted by the news agency as saying: “The upside momentum since WTI hit last week’s low of $58 has been continuing.
“Oil got mild support from gains in Asian equity markets, but has been getting pressure from the rise in US rig count and a slight recovery in the dollar.”
The increase in oil prices was also driven by concerns over tensions in the Middle East.
Israel passed indications of possible action against Iran after it was claimed that an Iranian drone entered its airspace that was eventually brought down.
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According to a report from General Electric’s Baker Hughes unit, the US oil rig count increased by seven to 798, its highest level since April 2015.
US production continues to rise and it threatens to undermine efforts by the OPEC to tighten oil markets.