Brent crude hit another two-year high this morning after the Saudi corruption purge

Emma Haslett
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Saudi Crown Prince Prince Mohammed Bin Nayef Meets With Obama At The White House
Source: Getty

Brent crude leaped to another two-year high this morning, as the price continued to be shored up in the wake of the so-called purge in Saudi Arabia.

The black stuff rose as high as $64.65 per barrel, its highest since May 2015, as expectations grew that the purge will strengthen the power of Saudi crown prince Mohammad bin Salman, who supports a production cut agreement by the Organisation of Petroleum Exporting Countries (Opec).

Meanwhile, US benchmark WTI crude rose to $57.69, its highest since April 2015.

The purge, which took place over the weekend, led to the arrests of dozens of princes, military leaders and ministers.

Although it shored up oil prices, analysts suggested the move may have ramifications on international markets.

"The authorities began freezing the accounts of people accused with corruption," said Ipek Ozkardeskaya, senior market analyst at London Capital Group.

"There is some discomfort in the global security markets, provided that Saudi investors have hundreds of million-dollar worth investments in international companies, including hotel groups, tech giants and others."

Oil traders were also awaiting the release of Opec's closely watched World Oil Outlook, due to be published today.

"Investors will focus on key messages regarding the global oil industry, as well as supply and demand trends in medium and long term," added Ozkardeskaya.

"The market is presently pricing in an extension of the production cut agreement at least until late 2018, as Opec will likely prefer providing extra support to the market as the global demand strengthens."

Read more: Trump gives Saudi purge the thumbs up - days after saying Aramco should list in the US

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