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Oil prices rise to hit four-year high of $70 a barrel

From BBC - January 11, 2018

The price of oil has hit $70 a barrel for the first time since December 2014.

Brent crude climbed after members of Opec, the cartel of 14 oil-producing nations that accounts for 40% of the world's output, said it would continue to limit supplies.

The RAC, the motoring group, has warned that rising oil prices could lead to higher forecourt costs for motorists.

However, the AA said that drivers would benefit if supermarkets resumed their petrol price war.

Suhail al-Mazrouei, the UAE oil minister and Opec president, said it was committed to limiting output until the end of the year.

Last year, Opec and other nations including Russia said they would extend a deal to cut production to help support oil prices that had fallen below $50 a barrel when the agreement was struck in 2016.

Thursday's rise was also bolstered by a surprise fall in US oil stockpiles.

The US Energy Information Administration on said crude inventories fell by almost five million barrels to 419.5 million barrels in the week to 5 January. US production also fell by 290,000 barrels per day to 9.5 million.

US oil also rose 1.5% to $64.51 a barrel.

The RAC said that rising oil prices were likely to have "a knock-on effect in the forecourt due to the increase causing the wholesale price of fuel to rise".

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