Oil prices passed $84 a barrel last night as Brent Crude’s rally entered a new week.
This is oil’s highest valuation on the UK-based index since March last year.
The resurgence in oil prices has been boosted by a global shortage of gas and spiralling energy costs.
It has resulted in oil stocks gaining 37 percent on the FTSE 100 during the calendar year of 2021.
There is increased speculation that oil’s recovery could increase inflation and living costs for UK consumers, with petrol prices already at an eight-year high.
Danni Hewson, financial analyst at AJ Bell, told City A.M. that while the most direct impact will be at the petrol pump, consumers will feel the costs of rising oil prices across the board.
She said: “Oil is a commodity used in a wide range of products and industries and a higher input cost will filter through to people’s pockets eventually via anything from flights to food prices.”
Since 20 September, the trading price has increased from $73.07 to $84.02.
The index’s figures represent a 1.98 percent increase on last Friday’s valuation and reflect a sustained period of growth in oil valuations.
The remarkable resurgence in oil prices also follows the UK-based index declining to below $20 a barrel in Spring 2020.
Meanwhile, across the pond the WTI Index reached $81.21, an increase on Friday’s figure of $79.35. This was the first time the index reached the $80 milestone since 2014.