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Oil price rises to two-year high after Saudi Arabia purge
The oil price has hit its highest level since July 2015 after Saudi Arabia’s crown prince increased his power in the kingdom by launching an anti-corruption purge over the weekend.
Oil cartel OPEC is to consider prolonging the production cuts at a meeting in Vienna at the end of November. Analysts said the uncertainty generated by the future king’s actions were behind the price of international benchmark Brent jumping to more than $62 a barrel, compared with around $50 in the first half of the year.
“The price rise is a reaction to the uncertainty from Saudi Arabia,” said Mihir Kapadi, chief executive of wealth management company Sun Global Investments.
Other factors have edged the oil price upwards. Saudi Arabia, Russia, Kazakhstan and Uzbekistan also met over the weekend and said they were willing to maintain restrictions on oil production, to address a glut in supply and prop up prices.