Oil price jump surprises markets

Energy prices have experienced an unexpected upswing

Russia, Saudi Arabia, oil, opec

Andrew Milligan / PA

The price of oil remains volatile, yesterday, the price of a barrel of Brent Crude jumped by 5% to just under the $40 mark following the surprise announcement by the US Energy Information Administration that US domestic stocks of oil had actually fallen by close to 5m barrels in the past week, instead of hitting new highs as expected.

The oil price is also supported by renewed hopes that a meeting of major oil exporting countries, including Saudi Arabia, on April 17th will hammer out an agreement to freeze current crude levels of crude oil production

Meanwhile, the share price of the beleaguered Irish oil production company, Tullow Oil rose 3% yesterday in response to positive tests indicating significant reserve potential in a field it co-owns off the coast of Norway.

The company's exploration director Angus McCross commented on the discovery:

'While we are still assessing the positive volume impact across our significant cluster of discoveries in this area, it is clear that having encountered more light oil in excellent reservoirs, with very strong flow rates, this asset clearly offers valuable development potential."