US oil hits highest since 2014

US oil prices hit their highest since 2014 on Wednesday as Opec-led production cuts and healthy demand helped to balance the market, but analysts warned of possible overheating.

A broad, global market rally, including stocks, has also been fuelling investment into crude oil futures.

US West Texas Intermediate (WTI) crude futures were at $63.42 a barrel, up 46 cents, at 1024 GMT. Earlier prices rose to $63.57, the highest since Dec. 9, 2014.

Brent crude futures were at $69.10 a barrel, 28 cents above their last close. Brent touched $69.29 in late Tuesday trading, the highest since May 2015.

“The extension of the Opec agreement ... and declining inventories are all helping to drive the price higher,” said William O'Loughlin, investment analyst at Australia's Rivkin Securities.

The Organisation of the Petroleum Exporting Countries, together with Russia and a group of other producers, last November extended an output-cutting deal to cover all of 2018.