Oil Price Reaches $40 a Barrel for First Time in 2016

Oil price has reached $40 a barrel for the first time this year as commodities continue to rally.

Brent crude later fell slightly and was trading at $39.81 a barrel.

Oil dropped below $28 in January, but has since risen as part of a wider recovery in energy and metal prices.

The price of iron also shot up, rising 19% amid greater optimism about Chinese economic growth and demand for the metal in the country’s refineries.

Iron ore is heading for the biggest price increase in a single day since 2009, according to data from MetalBulletin.

The price of copper has increased by 6.9% in 2016 and aluminum is up 5.3%.