THE oil price has hit a three year high amid concern about the potential for conflict between the US and Russia over Syria.
Brent crude traded at $71.87 yesterday afternoon, up $0.83 on Tuesday’s close, after President Trump said the US might fire missiles on Syria following a suspected chemical weapons attack in the rebel-held town of Douma last week.
Russia has warned against military action and said it will shoot down rockets fired at its ally.
The rise took Brent to the highest level seen since early December 2014.
The oil price has also been supported by recent signs that trade relations between the US and China may be improving.
Brent crude fell from $115 per barrel in June 2014 to less than $30 per barrel early in 2016, after growth in global production started to run well ahead of demand.
Moves by major exporters to curb production agreed late in 2016 triggered a partial recovery in the market.
The increase appears to have made oil and gas firms more willing to invest in the North Sea, following a long downturn in the area.
On Tuesday BP announced plans to develop two fields off Scotland, which will involve £420m investment.
The oil price rise has pushed up the cost of a range of goods including petrol.
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