Iran unrest and demand put oil at three-year high

Oil prices hit their highest level since 2014 on Wednesday after supplies of the black stuff shortened because of tighter production and rising demand.

WTI crude futures rose to $63.53 a barrel, the highest since December 2014, and Brent crude futures were the highest since May 2015 at $69.29.

Fears of further unrest in Iran, which has been rocked by anti-government protests, and ongoing Opec production curbs to stem a supply glut have sent the oil price spiralling to fresh highs.

According to data from the American Petroleum Institute, US inventories fell by more than 11 million barrels in the first week of the year.

Global demand is also forecast to rise by 100,000 barrels per day, the US Energy Information Administration said yesterday.

Fears of further sanctions on major oil producer Iran has also spooked the market.

Oil prices have been in the doldrums since a price collapse in 2014-15, leading to woes in the energy sector.

However, that has reversed since Opec members agreed to prolong production cuts past a March deadline last year.

Africa-focused Tullow Oil today beat cashflow expectations because of the higher oil price.

It generated $500 million (£370 million) of free cashflow for the year ending December.