The price of Brent crude oil climbed to over $60 per barrel during Friday’s trading, Bloomberg reports.
The last time Brent crude surpassed $60 per barrel was in 2015.
At the close of trading on Friday, the price benchmark had settled at $60.44 per barrel, down slightly from the day’s high of $60.66, according to Bloomberg.
West Texas Intermediate (WTI) also rose. It climbed approximately 2.2% to seven-month high, Amwal Al Ghad reports.
The rise in oil prices has been fueled by optimism that OPEC will extend its production cuts, according to Bloomberg.
“The Saudis keep pressing for an extension of the output-cut deal through next year, so the market is feeding off that, and we are seeing signs of tightening,” John Kilduff, a New York hedge fund investor, told Bloomberg. He also noted that lower exports from northern Iraq are impacting the market.
“The Iraq-Kurd situation is also getting the attention of the market. The volumes are down out of Ceyhan. This is not resolving itself as quickly as it looked like it might have been,” he noted.
Crude exports from the semi-autonomous Kurdish Regional Government to the Turkish port of Ceyhan have been halved since the Iraqi government seized the oil-rich Kirkuk region, falling from 600,000 barrels a day (b/d) to 300,000 b/d, Reuters previously reported.