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Oil prices hit $75 a barrel. their highest level since November 2014. on Tuesday after US President Donald Trump called the Iran nuclear deal `insane` adding to fears the US could impose further sanctions on the nation.
Brent Crude spiked to $75.5 a barrel before falling back below the $75 barrier while West Texas Intermediate (WTI) traded as high as $69.4 a barrel. They are currently trading at $73 and $67.8 a barrel respectively.
A rise in geopolitical tensions has been the main driver of prices in recent times with concerns mounting over whether the Trump administration will withdraw from the 2015 nuclear deal. which he called `insane` yesterday. and return to sanctions. a decision which needs to be made by 12 May.
Mounting tensions between the US and Syria following an alleged chemical attack from Syrian President Bashar al-Assad has also driven prices in recent times with Brent Crude rising over 7% to $72 a barrel over the week ending on 13 April.
Oil prices have rallied over 20% since early February and almost 70% since last year`s low seen in June as joint production cuts between OPEC and Russia have halted the supply side while continued global growth has increased demand as well.
The Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC members agreed to extend their cuts of 1.8 million barrels a day until the end of 2018 following a meeting in Vienna on November 2017. which was re-affirmed at an OPEC meeting in Saudi Arabia last Friday.
The deal has been agreed to continue until December 2018. However. members will assess their agreement and how it is impacting global stockpiles at the next meeting in June.
The decision to cut its oil supply. which was originally agreed in November 2016. was in response to a fall in global demand following a huge boom in US shale production and OPEC`s subsequent decision to flood the market in mid-2014.
However. on 20 April Trump blasted OPEC claiming they were keeping oil prices `artificially` high putting into doubt whether they can remain at these levels for the foreseeable future.
He said on Twitter: `Looks like OPEC is at it again. With record amounts of oil all over the place. including the fully loaded ships at sea. oil prices are artificially very high! No good and will not be accepted!`
