Concerns over a tightening supply are driving up oil prices


Global oil prices have surged amid concerns that supplies may be tightening due to output cuts from OPEC+ and other producers. Brent crude, the international benchmark, rose above $62 a barrel on Tuesday for the first time since January 2020, reaching a nearly one-year high.

Prices have been pushed higher by constructive data on global oil demand and supply cuts by OPEC+, which includes the Organization of the Petroleum Exporting Countries (OPEC) and other producers, led by Russia. Market analysts said the oil rally has also been helped by a weak US dollar, as well as hopes for a more rapid economic recovery following the rollout of Covid-19 vaccines around the world.