Oil prices are at their highest since 2014 thanks to Venezuela’s economic crisis and fears over whether the US will tighten sanctions on Iran.
Brent crude oil futures are at $75.63 a barrel, having touched $75.89 – the most since November 2014. The increase came despite the launch of nine US oil rigs, bringing the total count to 834.
On the rise: Brent crude oil futures are at $75.63 a barrel, having touched $75.89 – the most since November 2014
Analysts said recession in Venezuela, a major oil exporter, had kept prices high because its output was slowing. Carsten Fritsch, of Commerzbank, added: ‘The growth in production in the US is being counterbalanced by the simultaneous decline in Venezuela.’
US oil firm ConocoPhillips could take key Caribbean assets from Venezuela’s state-run PDVSA in a move which may lead to production being reduced further.
Venezuela’s output has halved in less than two decades to 1.5 million barrels a day after it failed to invest enough in its oil industry.