The oil
price has climbed above 80 dollars per barrel for the first time in
three-and-a-half years amid simmering global tensions over Iran.
Brent crude has been rising in
recent months as supplies tighten and the decision by Donald Trump to pull out
of an international nuclear deal with Tehran has added to the upward pressure.
The rising price of oil will add to the pressure on motorists’ fuel bills. But
is a welcome trend for oil companies including BP and Royal Dutch Shell, two
companies which are staples of UK pension funds.
Markets have been reacting to
the prospect of a sharp drop in Iranian oil exports after the US decision on
the deal.
French energy giant Total said
on Wednesday that it might abandon a multi-billion dollar gas project in the
country if it could not secure a waiver from US sanctions, adding to doubts on
European-led efforts to salvage the international nuclear agreement.
Meanwhile, global inventories of oil have dropped sharply in recent months on
robust demand and production cuts by top producing nations.
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