Oil is at its highest level since late 2014 due to supply cuts
World oil prices hit their highest level since late 2014 on Tuesday, driven by expectations that the United States would resume its sanctions on Iran and OPEC countries continue to cut supply amid strong demand.
Brent crude jumped $ 75.20 in early trade on Tuesday, a level it has not seen since November 27, 2014. Brent hit $ 75 at 0311 GMT, up 29 cents, or 0.4 percent, from its last close. .
It was the sixth consecutive session of Brent, the longest rally since a series of gains in December, making it more than 20 percent above its lowest level in 2018, in February.
US WTI crude futures were $ 68.98 a barrel, up 34 cents, or 0.5 percent from the last settlement.
Markets have been boosted by a cut in production by the Organization of the Petroleum Exporting Countries (OPEC) since 2017 to support the market, as well as the possible resumption of US sanctions on Tehran.
The cut-off agreement is in effect until the end of 2018. The agreement's participants are due to discuss extending it at the OPEC meeting in Vienna in June.
The United States has until May 12 to decide whether it will withdraw from Iran's nuclear deal and renew its sanctions against the OPEC member state, which would further reduce global supplies.
"Crude prices are at their highest level in three years, reflecting current concerns about the geopolitical tension in the Middle East, which accounts for almost half of the world's oil supply," ANZ Bank said on Tuesday.
Saudi Arabia, the world's top oil exporter, is leading OPEC's efforts to cut production as its Saudi Aramco seeks to raise prices ahead of a partial initial offering later this year or 2019.
OPEC's bid to cut production and the prospect of a resumption of US sanctions on Iran comes as demand in Asia, the world's largest oil consumer, reaches a new record with new refineries and more energy from China to Vietnam.