The Oil Price hits $70 Barrel for the first time in the last four months on 6th January 2019 due to US drone attack that assassinated the top military commander of Iran. This led to disruption in global energy supplies. The Brent Crude oil price hit £53.74 ($70.73) which was the highest level ever since a drone attack on a major Saudi oil facility in September 2019. This attack was not only impacted the oil prices but the European stock markets as well, with the FTSE 100 declining 0.6 per cent at close.
The UK supermarkets also reacted quickly to the increase in wholesale costs and resorted to increase prices. The variation between the average prices of UK retailers for petrol was 4.63p. The average price in the UK was 126.11p per litre. The average was 121.48p per litre for the big four hypermarkets.Â
However, there was good news for the drivers in December 2019 by reduction in fuel prices from the supermarkets in the middle of the month, but sadly it further turned worse once oil prices started increasing as a result of US's trade war with China beginning to cool down.
Michael Pearce, a senior US economist at Capital Economics, said that the oil price could further increase if Iran military retaliates by either attacking Saudi oil facilities or trying to block the Strait of Hormuz, through which 20 per cent of global oil supply is transported.
The risks of global economic recession could increase due to persistent oil price shocks and could add around 2 pence a litre to the price of petrol. However, market analysts have shown some doubt also for the rising prices in the coming months because of more than enough production from outside the Middle East, which contradicts with Michael Pearceâs comments.
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Caught between the US and Iran tensions, the European stock exchanges were impacted; the composite Stoxx 600 reduced by 0.5 per cent, Frankfurtâs Xetra Dax reduced by 0.7 per cent while Parisâs CAC 40 fell by 0.5 per cent.
However, Big oil firms were among the top risers on the FTSE 100 on 6th January 2020. This includes BP Plc, which was up nearly 2 per cent and RDSA, which was up by 1.5 per cent in early morning trading on 6th January 2020.
 Conclusion
Oil price is likely to shoot up if Iran acts on its vow to take revenge for the action of the United States. It remains to be seen how the market unfolds in the coming days.
UK Top energy stocks
Royal Dutch Shell Plc
Royal Dutch Shell plc (LON: RDSA) is an energy company engaged in the discovery of natural gas and crude oil around the world. On 9th December 2019, the RDSA share price was trading at GBX 2,176.5 per share and reached the highest level in one month on 06th January 2020 at GBX 2,309.00 per share as well as attained lowest price in one month of GBX 2,152.5 per share as on 13th December 2019.
The share price increased by 6.09% from 09th December 2019 to till 06th January 2020 and the share price increased by 3.31% from 31st December 2019 to till 06th January 2020. However, the share price of RDSA in last six days also increased in correlation with the crude oil price per barrel.
BP Plc
BP Plc (LON: BP.) is a unified gas and oil company. On 9th December 2019, the BP share price was trading at GBX 471.25 per share and reached the highest level in one month on 06th January 2020 at GBX 504.1 per share as well as attained lowest price in one month of GBX 462.45 per share as on 13th December 2019.
The share price increased by 6.97% from 09th December 2019 to till 06th January 2020 and the share price increased by 6.26% from 31st December 2019 to till 06th January 2020. However, the share price of BP in the last six days also increased in correlation with the crude oil price per barrel.
Vivo Energy Plc
Vivo Energy Plc (LON:Â VVO) is a UK-based company which delivers Shell-branded lubricants and fuels to the commercial and retail segment in Africa. On 9th December 2019, the VVO share price was trading at GBX 117.8 per share and reached the highest level in one month on 16th December 2019 at GBX 129.40 per share as well as attained lowest price in one month of GBX 115.8 per share as on 11th December 2019.
The share price increased by 0.51% from 09th December 2019 to till 06th January 2020 and the share price decreased by 4.67% from 31st December 2019 to till 06th January 2020. However, share price of VVO in last six days decreased and were opposite to the direction of movement of crude oil price per barrel.
 Tullow Oil Plc
Tullow Oil Plc (LON: TLW) is an autonomous company engaged in the production and exploration of gas and oil. On 09th December 2019, the TLW share price was trading at GBX 39.94 per share and reached the highest level in one month on 13th December 2019 at GBX 67.8 per share.
The share price increased by 48.92% from 09th December 2019 to till 06th January 2020 and the share price decreased by 7.06% from 31st December 2019 to till 06th January 2020. However, share price of TLW in last six days decreased and were opposite to the direction of movement of crude oil price per barrel.
Premier Oil Plc
Premier Oil Plc (LON: PMO) is an autonomous oil and gas exploration and production company with interests in the Falkland Islands, North Sea, South East Asia and Latin America. On 9th December 2019, the PMO share price was trading at GBX 88.28 per share and reached the highest level in one month on 06th January 2020 at GBX 101.45 per share as well as attained lowest price in one month of GBX 87.0 per share as on 11th December 2019.
The share price increased by 15.02% from 09th December 2019 to till 06th January 2020 and the share price increased by 4.65% from 31st December 2019 to till 06th January 2020. However, share price of PMO in last six days also increased in correlation with the crude oil price per barrel.
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