KEYFACT Energy
Fears of escalating conflict in the Middle East are gripping the markets this morning, following the drone attack on Saudi Arabia’s biggest oil production facility on Saturday.
The attacks leave Saudi Arabia facing weeks without full crude and gas production capacity, and ratchet up the geopolitical tensions in the region.
The oil price has surged 10% this morning (it was up 20% at one stage!) amid fears of disruption to energy supplies.
Brent crude oil hit $71.95 for the first time since May, and is currently changing hands at $66.63 per barrel, up from just $60 on Friday night.
This will push up fuel and heating costs - lifting inflation and potentially weakening the global economy at a critical moment.
Source: The Guardian