By self made [CC BY-SA 3.0 ], via Wikimedia Commons
Oil prices have soared to almost mid-2015 highs, with WTI and Brent crude trading at levels that they have not reached in over two years.
In early trading, Brent crude, a global benchmark, increased to $66.68 per barrel while its US counterpart is inching nearer the $60 mark, trading at $59.82.
Traders attribute the higher prices down to China revealing strong import quotas for next year, which could lead to another record for purchases by the largest importer in the world.
The oil market has also been aided by 12 months of cuts on OPEC and Russia-led production, which are said to continue throughout 2018.
Pipeline outages in the North Sea and Libya have also been supporting oil prices.
The head of trading for Asia/Pacific at futures brokerage Oanda, Stephen Innes, stated: “Given the much stronger price response to supply disruptions in the wake of OPEC supply cuts, the market is poised to make further gains.
“With geopolitical risk no less sure ahead of Libyan elections next year, we should expect more regional chaos and disorder to underpin oil prices.”