Global oil prices hit highest since Nov. 2018 amid OPEC supply cuts

SINGAPORE (Reuters) – Oil prices rose to their highest level since November, 2018 on Monday, driven upwards by OPEC's ongoing supply cuts, US sanctions against Iran and Venezuela, and strong US jobs data.

International benchmark Brent futures were at $70.65 per barrel at 0441 GMT on Monday, up 31 cents, or 0.4 percent from their last close.

US West Texas Intermediate (WTI) crude were up 31 cents, or

0.5 percent, at $63.39 per barrel.

Brent and WTI both hit their highest since November at $70.76 and $63.48 a barrel, respectively, early on Monday.

“Brent prices increased more than 30 percent year-to-date as OPEC+ continued to cut supply for four months in a row and optimism over US-China trade talks helped to buoy the demand outlook,” US bank J.P. Morgan said in a note.

To prop up prices, the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies like Russia, known as OPEC+, have pledged to withhold around 1.2 million barrels per day (bpd) of supply this year.

Energy consultancy FGE said these cuts meant "excess inventories are disappearing," adding that "the market is poised for prices to rise to $75 per barrel or higher" for Brent.

Strong US jobs data on Friday also helped lift Asian markets on Monday.

"Oil bulls are drawing heart from the strong employment data in the US," said Sukrit Vijayakar, director of energy consultancy Trifecta.

"Military action in Libya, which could disrupt supply from the OPEC member, also aided prices," he said.

Crude has been driven up further by US sanctions against Iran and Venezuela.