The Price of oil have rose up to over 900 Rand per barrel for the first time in two years. The Brent crude has surged to its highest level since June 2015, trading above R884,96 per barrel in December 2017.
Last week the Department of Energy (DoE) on Monday announced that the price of a litre of 93 (ULP and LRP) and 95 (ULP and LRP) will each increase by 71 cents.
Earlier this month, The Organization for Petroleum Exporting Countries (OPEC) and non-member states, led by Russia, struck a deal to extend production cuts into 2018.
The latest spike can be attributed to a looming shutdown of the North Sea Forties Pipeline System (FPS), transporting some 450,000 barrels of oil per day, generating fears of major supply disruptions.
Oil prices slumped below R476,51 a barrel late in 2015 amid slowing demand and oversupply, exacerbated by Iran’s return to global markets as a result of the nuclear deal stuck earlier that year between Tehran and six major world powers.