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.
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In Premium today, you can catch the latest episode of The Editor’s Desk – Alec Hogg and I dig into Ramaphosa’s stimulus package and ask whether or not it will do the trick. You can also get the inside story of how South Africa’s Independent Group may have censored critical news about China and you can learn about the newly announced merger between Barrick Gold and Randgold Resources.
