Oil prices reach new highs after Saudi arrests

The price per barrel opened at its highest since July 2015

Saudi Arabia's corruption probe coupled with tightening markets helped oil prices reach two-year highs. Essam Al-Sudani / Reuters

The price of oil inched up to its highest level in more than two years amid Saudi Arabia’s corruption shake-up and tightening markets.

Brent crude futures, the international benchmark, began trading at US$62.41, up slightly by 0.5 per cent from the Friday close, while North America’s West Texas Intermediate (WTI) opened at $55.97.

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The weekend brought on major changes in Saudi Arabia, Opec’s largest producer, as the kingdom detained dozens of government officials and businessmen in a corruption probe, led by Crown Prince Mohammed bin Salman.

Feelings are mixed if the kingdom’s upheaval will have a great impact on oil markets. However, markets are tightening with demand increasing.

The UK-based consultancy firm, Energy Aspects, said on Sunday that it didn’t see oil reacting to the news out of Saudi Arabia while a trader out of Libya predicted a 10 per cent jump for WTI by the end of the week.