The price of oil is creeping up because of political unrest in the Middle East and concerns around US output, according to analysts.
Brent crude is currently trading at around $65 a barrel, up from lows of under $50 a barrel seen at the beginning of the year. In March the price averaged $57.26 a barrel, compared to $50.18 in January.
Damien Cox, analyst at EnergyQuote JHA, said: “Geopolitical tensions in the Middle East seem to be the most recent catalyst for the move higher, in addition to concerns that US output may have peaked, for the time being at least, in response to the halving in the oil price.
“Otherwise fundamentals still appear relatively healthy so it may be that prices retrace just as quickly as they’ve risen if there’s a dissipation of risk.”
In January oil prices hit lows not seen in five years against a background of weak demand and overproduction.