Brent crude futures surged above $70 a barrel for the first time since the COVID-19 pandemic began, while U.S. crude touched its highest in more than two years, following reports of attacks on Saudi Arabian facilities. Brent crude futures for May hit $71.38 a barrel in early Asian trade, the highest since Jan. 8, 2020, and were at $70.96 a barrel by 0611 GMT, up to $1.60, or 2.3%. U.S. West Texas Intermediate (WTI) crude for April rose $1.47, or 2.2%, to $67.56. The front-month WTI price touched $67.98 a barrel earlier, the highest since October 2018.

5.1 With the aid of well labelled diagrams, critically discuss how the bombing of the oil facilities in Saudi Arabian resulted in the price of oil touching its highest in more than 2 years.

5.2 Discuss how oil cartels influence oil price movements globally and the impact that it could have on the economy of non-oil producing countries.