Oil price rising fast, but Opec won’t increase production

By Felicity Duncan

Oil topped $81 a barrel on Monday – its highest level in almost four years. The price has been driven higher by widespread worries that big producers like Russia and Saudi Arabia won't be able to compensate for the loss of production from Venezuela and Iran. The oil cartel Opec met on Sunday to discuss production targets but decided not to increase output.

The news will doubtless be disappointing to US president Donald Trump, who has been tweeting threats at Middle-Eastern oil-producing nations. It will also be worrying to consumers, as rising oil prices have historically been a driver of higher inflation. US consumers, who are already going to be paying hefty tariffs on imports, may also find prices rising at the pumps. And for consumers in South Africa, well, the news just keeps getting worse. However, some analysts called the price spike an overreaction and said that markets will likely calm down over the next few days. Definitely something to keep an eye on.

___STEADY_PAYWALL___