Brent crude oil prices surged over 3 percent overnight as investors anticipate supply crunch caused by the upcoming US sanctions against Iran and the Opec's non-commitment to raise output.
Brent crude oil futures nudged up 0.1 percent to $81.28 a barrel after surging more than 3 percent overnight to $81.48, highest since November 2014.
Jonathan Barratt, CIO at Probis Securities, said, “When you look at all the reports, everyone has just one concern. The global economic picture is looking okay for the time being and as a result of that we do not have that supply to meet demand. I guess when you look at the inventory levels in US, that does tell us that we have an increased demand. Then take what Venezuela, Iran, OPEC and Russia are talking about at the moment, then you get the picture that supply tightness will continue. That is why we feel prices from these levels still have a fair way to go on top side and we get those daily closes above those important areas."