Oil prices look set to keep climbing…
Analysts say oil prices have recovered largely after hitting lows earlier this year.
JOHANNESBURG - Oil prices look set to continue climbing as major producers cut output.
Analysts say oil prices have recovered largely after hitting lows of around $28 a barrel in January.
It's now $40, 39 a barrel.
The International Energy Agency (IEA) says prices have 'recovered remarkably' in recent weeks, because of supply outages in Iraq, Nigeria and the United Arab Emirates, and signs that non-OPEC supply is falling faster than expected.
Iran was expected to flood the market after sanctions were dropped due to adherence with the United Nations (UN)'s demands over its nuclear programme.
The country then said it would reclaim its position in the world oil market, regardless of oversupply.
However, this hasn't happened and prices are now climbing.
The Paris-based IEA says there are clear signs that market forces are 'working their magic' and higher cost producers are cutting output.
This is bad news for the petrol price as the rand is still battling against major currencies.