2017.11.0603:27:00UTC+00Tightening Markets, Saudi Purge Give Oil Prices Boost

Oil prices reached their highest levels since July 2015 at the start of the week as markets tightening and as Saudi Arabia's crown prince consolidated his power during the weekend via a sweeping anti-corruption purge that included detainment of high profile personalities and figures in the Kingdom.

Brent crude futures surged to $62.44 per barrel, the international benchmark for oil prices' highest level since July 2015 and following a decline was immediately retraced. The prices of the contract is 40 percent higher than the June's 2017 lows.

Meanwhile, U.S. WTI crude futures rose to $56 per barrel in early Monday trading. The contract's price is the highest since July 2015. WTI is one-third above its lows for the year.

Over the weekend, Crown Prince Mohammed bin Salman increased his control over the Kingdom by launching a widespread anti-corruption crackdown which resulted in the arrest of royals, ministers and well-known investors such as Alwaleed bin Talal.

Analysts said that while the purge is a sharp turning point in the political development of Saudi Arabia, there are no immediate changes expected in the Kingdom's oil policy.

Meanwhile, in the fundamentals aspect, traders said there were indications of tightening market conditions. Last week, oil firms in the U.S. slashed eight oil rigs, bringing the number down to 729 and marking the biggest oil rig number reduction since May 2016.