Oil prices rose to their highest level since November 2018 on Monday, driven upwards by OPEC’s ongoing supply cuts, US sanctions against Iran and Venezuela, fighting in Libya as well as strong US jobs data.
International benchmark Brent futures were at $70.62 per barrel, up 28 cents, or 0.4% from their last close. US West Texas Intermediate crude were up 30 cents, or 0.5%, at $63.39 per barrel, CNBC reported.
Brent and WTI both hit their highest since November at $70.76 and $63.48 a barrel, respectively.
To prop up prices, the Organization of the Petroleum Exporting Countries and non-affiliated allies like Russia, known as OPEC+, have pledged to withhold around 1.2 million barrels per day of supply this year.
“OPEC’s ongoing supply cuts and US sanctions on Iran and Venezuela have been the major driver of prices throughout this year,” said Hussein Sayed, chief market strategist at futures brokerage FXTM.
“However, the latest boost was received from an escalation of fighting in Libya which is threatening further supply disruption,” he added.
Strong US jobs data on Friday also still supported markets on Monday. “Oil bulls are drawing heart from the strong employment data in the US,” said Sukrit Vijayakar, director of energy consultancy Trifecta.