Oil prices have risen as the escalation of the military conflict in Yemen still triggers concern despite the supply glut. The value of Brent crude oil renewed a yearly high having reached the level of $69 per barrel. The price surge got the support due to ongoing fighting in Yemen where Saudi Arabia is conducting active warfare. Yemen is in a close proximity to navigable waters which are used for transportation of oil from the Persian Gulf to Europe via the Suez Canal. Considering these circumstances, oil market analysts believe that the price will rise, and, probably, a barrel of oil will worth $80 by the end of this year. "There are many factors. Firstly, the situation in the Middle East is quite unstable, and the escalation of the conflict between Saudi Arabia and Iran in Yemen is highly possible. It haven't happened until now, but such risks are still present, so investors dread of such pace of development," a chief strategist at CMC Markets Ric Spooner said. The expert noted that the market needs to reduce existing stocks. "We are now seeing the price level at $70 per barrel, so it is possible that the situation with shale production will improve soon. Therefore, we do not expect a sharp rise in prices up to $100-120 per barrel as in 2010-2014. But at the same time we believe that further rather slow recovery nearly to $80 per barrel will be seen within a year," the analyst at Commerzbank Eugen Weinberg sums up.
