LONDON – Oil prices jumped more than 2 percent to a four-year high on Monday after OPEC declined to announce an immediate increase in production despite calls by US President Donald Trump for action to raise global supply.
This will be bad news for cash-strapped South African consumers, who already face a hefty fuel price hike.
Estimates suggest motorists will already fork out over a rand more for fuel from next month.
Benchmark Brent crude hit its highest since November 2014 at $80.94 per barrel, up $2.14 or 2.7 percent, before easing back to around $80.65 by 1000 GMT.
US light crude was $1.25 higher at $72.03.
“This is the oil market’s response to the OPEC+ group’s refusal to step up its oil production,” said Carsten Fritsch, commodities analyst at Commerzbank in Frankfurt.
Trump said last week that OPEC “must get prices down now!”, but Iranian Oil Minister Bijan Zanganeh said on Monday OPEC had not responded positively to Trump’s demands.
– Additional reporting Reuters