Brent approached $39 per barrel on the news from the Middle East


Moscow. On 4 January. Oil prices show strong growth on Monday on the news of the rupture of diplomatic relations between Iran and Saudi Arabia, Bloomberg reported.

The cost of the February futures for Brent crude on London’s ICE Futures exchange to 18:05 in Moscow increased by $1,61 (4,32%) to $38,89 per barrel.

Futures price for WTI crude oil for February in trading on the new York Mercantile exchange (NYMEX) increased to a specified time on a $1.1 (3%) to $38,15 per barrel.

On Monday it became known that Saudi Arabia has severed diplomatic relations with Iran. The authorities took this decision in response to the defeat of its Embassy in Tehran after the execution of Riyadh’s influential Shiite preacher Nimr al-Nimr. Also its diplomatic representatives from Iran withdrew Bahrain and Sudan, and the UAE has reduced its diplomatic mission in Tehran.

According to the International energy Agency (IEA), the share of Middle East countries account for around 30% of world production of oil. Saudi Arabia ranks first in oil production among OPEC countries (10,25 million barrels in December), the Iran – fifth (2.7 million barrels).

Tehran and Riyadh hold opposing points of view in almost all of the middle East conflict.