This is a subscriber-only article
Oil markets have rallied this week with the price of Brent crude oil breaking $64/barrel – its highest price in over two years.
The sharp increase in the price of oil comes on the back of rising tension in the Middle East.
An escalating war of words between Saudi Arabia and Iran has sparked fears in oil markets of a pending conflict that would undoubtedly impact global oil supplies.
Saudi Arabia is the world’s second largest oil producer behind the US, while Iran is the world’s seventh largest producer.
The growing tensions in the Middle East have seen the price of Brent crude oil, the global benchmark, jump almost 6% to $64.05/barrel on Monday. Oil prices have now risen 40% since early June.
The oil price revival has also stirred talk in oil markets that prices could hit $70/barrel before the end of the year.
In the US, the pace of drilling by shale oil producers has eased back as companies focus on cutting costs and becoming more profitable.
The rise in oil markets will also be welcomed by Opec member countries, which have endured a painful three years since oil prices plunged from highs of $120/barrel to less than $30/barrel in early 2016.
Bank of England lifts interest rates for the first time in a decade
SHARING OPTIONS: