Oil trades near strongest levels since 2015
In a development that could hit the cost of fuel at UK pumps, oil prices have climbed to their highest levels since 2015 amid the ongoing protests in Iran.
Brent crude, used to price international oil, was at $67.18 (£49.56) a barrel today, up 0.5 per cent, after hitting a May 2015 high of $67.29 a barrel earlier in the day.
“Growing unrest in Iran set the table for a bullish start to 2018,” the U.S.-based Schork Report said in a note today.
Anti-government protests were staged in Iran on Sunday, the fourth day of unrest against the regime. Coupled with continued cuts to the supply of oil by the OPEC cartel and Russia, the rising price could soon be felt by British motorists at the pumps.
US crude output is also slipping from a record-high, with weekly production down in the week before Christmas for the first time since mid-October.
Oil markets have been supported by a year of production cuts led by the Middle East-dominated Organization of the Petroleum Exporting Countries and Russia. The cuts started in January 2017 and are scheduled to cover all of 2018.