Iran's heavy crude oil price exceed $60

Crude Oil Price Forecast: Saudi Shake Up Supports Oil to 2 Year High

In regard to the failed ballistic missile attack on Riyadh's international airport also on November 4, al-Jubeir told CNN that it was as an "act of war by Iran" and will "respond in the appropriate manner at the appropriate time".

A number of former and current Saudi officials, including 11 princes and four incumbent ministers, were detained by authorities over the weekend as part of an anti-corruption operation launched by the government, resulting in an increase of oil prices to their highest levels in over two years.

Brent futures have gained around 14 percent in the last month alone, propelled largely by evidence that output cuts by OPEC and its partners are reducing the global oil glut. WTI Crude Oil was at $57.35 on Monday and dropped to $57.24 on Tuesday.

Saudi Arabian Foreign Minister Adel bin Ahmed al-Jubeir said that the country has zero tolerance towards corruption and extremism and dismissed speculation that the shock arrests of princes and ministers amounted to a grab of power by Crown Prince Mohammed bin Salman, the media reported. Unease grew, after a rocket was fired from Yemen towards Saudi Arabia. "Even if it rises temporarily above $70 perbarrel, it is unlikely to be sustained for a long period of time as the higher the price will increase the production of US shale oil, which will effectively put a cap on oil prices", Mu said. More importantly, that higher oil price target may meet the resistance of Russia-the leader of the non-OPEC group of producers' pact-which is now generally viewed as steering the OPEC/non-OPEC oil production policy, together with OPEC kingpin Saudi Arabia.

According to Capital Economics, it is confident about its year-end forecast of $57 per barrel for Brent.

Traders said they were also watching escalating tensions in the Middle East, especially between regional rivals Saudi Arabia and Iran.

"I assure you that the Kingdom of Saudi Arabia takes very, very seriously the issue of corruption, waste, and mismanagement. Proposed changes are all positive from an economic point of view", Imsirovic said. The Monday surge was driven by news of a political purge by the Saudi crown prince, exacerbated by rising tensions elsewhere.

Oil Price reports in its article Citi: Don't Expect OPEC To Extend Production Cuts that so far, most hedge funds bet that Brent futures will rise as a result of an agreement extension that will extend 1.2 million barrels per day worth of cuts through 2018.

Here it is: Why are oil prices spiking?

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