A leak in a Venezuelan oil field

OIL prices have soared to their highest levels since November last year in the wake of US sanctions on Iran and Venezuela.

The price surge has been caused by an OPEC-led supply cut and US sanctions on Iran and Venezuela. The Organisation of the Petroleum Exporting Countries (OPEC), as well as some non-affiliated producers like Russia, agreed late last year to cut output by 1.2 million barrels per day. The cutback was to prevent a current large supply overhang from swelling more.

Further to this, crude prices have been affected by US sanctions against oil exporters and OPEC-members, Iran and Venezuela.

Both factors have swelled price of the commodity that could transfer to higher rates at the pump.

US West Texas Intermediate (WTI) crude oil futures pushed through $56 (£43) per barrel for the first time this year.

This is a rise of 0.8 percent from their last settlement.

International Brent crude futures hit a high of $66.78 (£51.70) per barrel before easing to $66.65 (£51.60) per barrel.

A rise of 0.6 percent from their last close.

For both benchmarks, these were their highest levels since November 20, 2018.

A slight offsetting of the general trend in price increase for oil is expected due to increased output from the US.

Traders in financial markets are hopeful the United States and China would soon resolve their trade disputes.

ANZ bank said on Monday: “Positive signs in the US-China trade talks helped boost sentiment across markets.”

US energy firms last week increased the number of oil rigs looking for new production by three, to a total of 857.

That means the US rig count is higher than a year ago when fewer than 800 rigs were active.

Traders in financial markets are hopeful the United States and China would soon resolve their trade disputes.

source: Express.co.uk