Oil rose above $75 a barrel on Tuesday to its highest since November 2014 before paring some gains, supported by OPEC-led production cuts, strong demand and the prospect of a US pullout from the Iran nuclear deal.
British consumers are bracing themselves for an expensive and uncertain post-Brexit future, with four out of five fearing price rises on household essentials such as food, drink and clothing, a survey has revealed.
Oil Minister Bijan Namdar Zanganeh said that he was confident the OPEC and non-OPEC members would remain committed to the output cut deal agreed in November, noting that oil prices would rise further as a result.
Iran’s Oil Minister Bijan Namdar Zanganeh said he expects the price of oil to remain within the margin of $50 to $55 per barrel following a recent deal between OPEC and non-OPEC producers to curtail output.
Oil prices eased on Tuesday on news that Iran and Libya have continued to increase production, overshadowing an OPEC agreement struck last week to freeze output levels in a bid to stem a two-year price rout.
Oil rose to its highest price since August, above $50 per barrel on Monday, supported by a planned production cut by exporter club OPEC, although analysts cautioned that the stubbornness of the existing supply overhang could temper a longer-lasting rally.
Oil prices surged over 4 percent, with Brent briefly touching $50 a barrel for the first time in two weeks, after a surprisingly huge drawdown in US crude stocks as Gulf Coast imports slumped to a record low.