Investing.com – Oil’s recent rally above $60 a barrel continued on Wednesday with Brent crude climbing to its highest level since mid-2015, adding to hopes that the energy industry is finally turning a corner after a three-year downturn.
A recovery in oil prices has been underway since July as demand outstripped supply, reducing global inventories.
Brent crude, the international benchmark for oil prices, rose above $60 a barrel to a more than two-year high last week.
Efforts by OPEC and Russia to hold back about 1.8 million barrels per day in oil production have helped to tighten the market in the second half of the year.
The rally in oil has boosted the share prices of energy companies, who were hard hit by the steep drop in prices since 2014, when oil was trading above $100 a barrel.
The Euro Stoxx Oil and Gas index has rallied 14% since late August and the bullish price performance for the sector has strengthened during the past week.
Traders expect that major oil producers will continue to curb oil output throughout 2018, easing fears that increased output from certain countries could flood the market just as the global supply glut is shrinking.