Oil markets rallied to a two year high this week as prices broke $64/barrel for the first time since 2015. Oil prices have now risen 40% since early June and market speculators are hinting at $70/barrel by year end.

The sharp increase in the price of oil comes on the back of rising tension in the Middle East.

Any conflict between these countries could lead to a gap in global oil supplies.

A rising oil price is positive for dairy. Oil economies account for 30% of global dairy imports.

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Oil prices rally to two year high above $64/barrel