Ask a wag what they think the oil price will be this year and they will reply “whatever Saudi Arabia wants it to be”.
Where there used to be a lot of truth in that spake, this year it is more likely to be Iran in the driving seat of the oil price.
The EU has confirmed that a ban on Iranian oil imports is to start in June.
There is a lead in time to cushion the effects. Saudi has said it will up production to meet demand.
But there is the whiff of geopolitical instability about the whole situation that frays the markets nerves – and when they get jittery, so the price of oil will spike.
More frugality in usage will probably be the watchword in the months to come. Has anyone else noticed the diminution of traffic on our roads of late?
