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For the first time in two years, the price of oil has climbed to its highest level, with Brent crude hitting above $69 per barrel.

As of Wednesday, the oil price touched $69.26 per barrel, the highest since June 2015.

The latest rally has been due to the production cuts imposed by the Organisation of the Petroleum Exporting Countries (OPEC) and decline in oil inventories.

Analysts said the increase stoke hopes in the industry that the market has finally turned a corner following a three-year downturn.

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Vijay Valecha, the chief market analyst at Century Financial Brokers, said the major reasons behind oil’s recent rally is the extension of the Opec agreement and the lowest level of crude inventories.

“We expect Brent prices to move further higher to more than $75 due to an increase in demand,” Valecha said.

Meanwhile, Europe remains the major destination of Nigerian crude grades, accounting for 36.59 percent of the total sales, with Asia and the Far East receiving 28.43 percent, according to Group General Manager, Crude Oil Marketing Division, Malam Mele Kyari on Tuesday.

He said 16.57 percent of Nigeria’s crude grades were exported to North America, 13.17 percent to Africa, 2.84 percent to South and Central America, while the rest of the world served as beneficiaries for the rest.

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