Oil Hits Highest Levels Since Two Years
Even though the future of fossil fuel is periled, for now, it continues to hold sway and economies depending on it have a reason to continue to smile.
After more than a year of market troubles, the prices have picked up, shooting up to its highest levels since 2 years.
On Monday, oil prices hit their highest levels as markets tightened.
Brent futures, the international benchmark for oil prices, hit $62.44 per barrel early on Monday, their highest level for years now.
This comes immediately after Saudi Arabia’s crown prince cemented his power over the weekend through an anti-corruption crackdown that included high profile arrests.
The arrest included prominent business Billionaire, Alwaleed bin Talal, and the Head of the National Guard, Prince Miteb bin Abdullah.
"This consolidates the reforming process underway, part of which is a desire to drive the price of oil higher," said Greg McKenna, chief market strategist at futures brokerage AxiTrader.
Bin Salman's reforms include a plan to list parts of giant state-owned oil company Saudi Aramco next year.
In oil fundamentals, traders said that there were ongoing signs of tightening market conditions.
U.S. energy companies cut 8 oil rigs last week, to 729, in the biggest reduction since May 2016.
While supplies are tightening, analysts say demand remains strong.
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