It peaked at $80.37-barrel before cooling later to close at $79.38 in London markets.
Geo-political tensions in the Middle East were credited as the cause by market observers, in tandem with the ongoing OPEC cartel production cuts.
And Bank of America Merryl Lynch last night forecast that the price of Brent Crude could top $100-barrel in 2019 – bringing it close to the $110-barrel prices last seen in June 2014.
Francisco Blanch, the bank’s head of commodities research, said: “Looking into the next 18 months, we expect global oil supply and demand balances to tighten driven by the ongoing collapse in Venezuelan output.
“In addition, there are downside risks to Iranian crude oil exports. Plus we see a high likelihood of OPEC working with Russia in 2019 to set a floor on oil prices,”
The price of oil is now almost three times what it was back in January 2016 when Brent crude fell below $28, it’s lowest price since 2003. The price of a barrel of Brent crude has now gained more than 16% since early April.
Scotland, despite being a major oil producing country, will see little or no benefit given oil revenues go straight to the UK Treasury.
Successive UK governments since the 1970s failed to invest the many billions from the North Sea, and oil majors and minnows alike are taking a cautious ‘wait and see’ approach on making any decisions to investment in new oil exploration in the ageing Scottish basin.
Since it discovered oil in the North Sea last century at the same time as Scotland, Norway’s sovereign wealth oil fund has grown to a current value of more than $1-trillion.
- Three Scottish energy companies won industry export awards yesterday from the British Board of Trade – Bowalds Energy and oil and gas contractor Enerquip in Aberdeen and Glasgow-based temporary power generator Aggreko.
18 May 2018