Oil prices are rising in the course of trading as Saudi Arabia cut ties with Iran, Bloomberg reports.
As of 9:25 the cost of the February futures of Brent crude oil on London's ICE trading have risen by 1.8% to $37.95 per barrel, WTI increased by 1.65% to $ 37.65 per barrel.
"It may be seen by the market as an incremental step in a possible longer-term escalation of problems in the core oil- producing nations of Saudi Arabia and Iran. It’s likely to lead to some short covering and a bit of risk premium being built into pricing. There’s no immediate threat to production," a chief analyst at CMC Markets, Rick Spooner, said.
