Oil prices rise after Russian plane shot down over Turkey

The incident has fuelled concerns over conflict in the Middle East, which produces two-thirds of the world’s oil

Oil prices have halved in less than a year thanks to oversupply that has prompted warnings over the state of Middle Eastern economies (AP)

Oil prices have risen after Turkey shot down a Russian jet.

Turkey said it was protecting its sovereignty. The jet was reportedly warned to leave Turkish airspace 10 times before it was shot down “in line with its rules of engagement”, in an incident that was not “against” any specific country, Turkey said.

Russia has told several state-run media outlets that the plane was over Syrian territory.

The incident has fuelled concerns over conflict in the Middle East, which produces two-thirds of the world’s oil.

Brent crude rose 1.1 per cent to $45.33 a barrel on the ICE Futures exchange in London. Saudi Arabia’s announcement that it will co-operate with other producers of oil has also helped support rising prices.

Saudi Arabia’s state controlled news agency said Monday that it wanted to co-operate with members and non-members of the Organisation of the Petroleum Exporting Countries to try and keep the market stable.

Oil prices have halved in less than a year thanks to oversupply that has prompted warnings over the state of Middle Eastern economies. Goldman Sachs has said that prices could slide even further to as low as $20 a barrel.