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Oil price slips after hitting a five-month high on Middle East fears

Brent crude touched $111.99 a barrel on Tuesday before easing on talk of Iran peace efforts.

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The price of oil jumped to its highest level in five months on Tuesday, then slipped back. Brent crude is the main global oil price. It touched US$111.99 a barrel on Tuesday, Reuters reported. Later it slipped to about US$108.72 by the middle of the day in New York. Reuters said hopes for talks involving Iran helped calm the market. On Monday, Brent had closed at US$109.55. Bank ING said "the market is pricing in a significant risk premium". That means traders are paying extra in case oil supplies get cut. Worries grew after Yemen's Houthi group claimed attacks on oil sites in Saudi Arabia. Saudi Arabia has not confirmed those claims. The Middle East produces a large share of the world's oil. When oil costs more, petrol and transport can cost more too. That can add to the cost of living here. Australia's next inflation figures come out on 28 October. It is not yet known where the price closed on Tuesday.