US oil prices have reached the highest levels since 2015 after OPEC-led production cuts and a fall in the American rig count.
The development comes after oil prices reached new highs recently.
However, opinion is divided among market watchers, with some of them speculating further price rises, while others warned the rally is a temporary and could come to a halt in due course.
US West Texas Intermediate (WTI) crude futures previously hit a May-2015 high of $62.56 a barrel. It soared 51 cents, or 0.8%, trading at $62.24 a barrel, according to Reuters.
Brent crude futures, the international benchmark for crude prices, jumped 44 cents, or 0.65%, trading at $68.22 a barrel.
Last week, Brent touched $68.27, its highest level since May 2015.
Traders attributed the price rise to speculative money being pumped into crude futures on account of expectations that the market will stabilise following a year of output cuts led by the OPEC and Russia, which are slated to continue until the end of this year.
However, rising US production is undermining the efforts to tighten the market.
Despite the recent dip in the number of US rigs for new production, it remains well above the low of 316 in June last year.
Freight Investor Services fuel broker Matt Stanley was quoted by the news agency as saying: “US crude oil production is still increasing, so surely this evidences that the system is, once again, becoming even more efficient.”
The ongoing output cuts do not seem to have affected Asia, as the region continues to have ample fuel supplies.