Brent crude oil rose above $60 per barrel today for the first time since 2015.
The black stuff rose 1.75 per cent to $60.38 in late trading in London, after reports suggested the Organisation of the Petroleum Exporting Countries (Opec) are close to agreeing an extension to their production cut.
Meanwhile, WTI crude, the US benchmark, rose 2.2 per cent to $53.81, a six month high.
"Market chatter continues about the possibility of Opec extending their oil production cut beyond March 2018," said David Madden, market analyst at CMC Markets.
"Saudi Arabia yesterday claimed it would like to extend the production freeze until the end of next year. Oil producing countries don’t always deriver on their promises, but traders won’t want to call their bluff just yet," he said.
Today's rise is a u-turn for both benchmarks, with Brent crude ending last week more than $3 lower as political stability threatened to return to Kurdistan, while Iraqi forces regained control of two major oilfields around Kirkuk.
"The Saudi Crown Prince, MbS to his mates, has reiterated the Kingdom’s commitment to stabilising the oil market and with the backing of Vlad [Putin] post the recent Royal visit to Moscow, relationships appear pretty pukka," wrote oil analyst Malcolm Graham-Wood earlier today.
"Finally it seems that the Iraqi crisis is powering down somewhat and exports are picking up albeit slowly."