Oil prices hit their highest levels since July 2015 on Monday as markets tightened, while Saudi Arabia’s crown prince cemented his power over the weekend through an anti-corruption crackdown that included high-profile arrests.
Brent futures LCOc1, the international benchmark for oil prices were as high as $62.90 per barrel by 0750 GMT on Monday, their highest level since July 2015.
This is over 40 per cent above June’s 2017 lows, according to Reuters.
US West Texas Intermediate (WTI) crude CLc1 rose above $56 per barrel in afternoon trading, also the highest since July 2015, and was at $56.15 at 0750 GMT.
WTI is one-third higher than its 2017 lows.
In oil fundamentals, traders said that there were ongoing signs of tightening market conditions.
US energy companies cut eight oil rigs last week, to 729, in the biggest reduction since May 2016.
The decline in US drilling activity comes as the OPEC and a non-OPEC group lead by Russia have pledged to hold back about 1.8 million barrels per day (bpd) in oil production to tighten markets.
The pact to withhold supplies runs to March 2018, but there is growing consensus to extend the deal.
While supplies are tightening, analysts say demand remains strong.
The British bank said it was raising its average Q4 Brent price forecast by $6 per barrel to $60 per barrel.
Barclays said it raised its full-year 2018 forecast by $3 per barrel to $55 per barrel.
