Price of oil soars to highest in 4 years

Oil prices are at their highest since 2014 thanks to Venezuela’s economic crisis and fears over whether the US will tighten sanctions on Iran.

Brent crude oil futures are at $75.63 a barrel, having touched $75.89 – the most since November 2014. The increase came despite the launch of nine US oil rigs, bringing the total count to 834.

Analysts said recession in Venezuela, a major oil exporter, had kept prices high because its output was slowing. Carsten Fritsch, of Commerzbank, added: ‘The growth in production in the US is being counterbalanced by the simultaneous decline in Venezuela.’

US oil firm ConocoPhillips could take key Caribbean assets from Venezuela’s state-run PDVSA in a move which may lead to production being reduced further.

Venezuela’s output has halved in less than two decades to 1.5million barrels a day after it failed to invest enough in its oil industry.