Brent crude times rose above $ 70 for the first time since COVID began catching a pandemic while U.S. crude was at its highest level in two years.
Brent crude times rose above $ 70 per barrel on Monday for the first time since the outbreak of the COVID-19 pandemic, while U.S. crude touched its highest level in more than two years, following reports of attacks at Saudi Arabian facilities.
Brent crude futures for May hit $ 71.38 a barrel in early Asian trading, the highest since January 8, 2020, and were at $ 71.11 a barrel before 02:55 GMT, up $ 1.75, or 2.5 percent.
U.S. West Texas Intermediate (WTI) crude for April rose $ 1.60, or 2.4 percent, to $ 67.69. WTI’s April price hit $ 67.98 a barrel earlier, the highest level since October 2018.
Yemen’s Houthi forces fired drones and missiles at the heart of Saudi Arabia’s oil industry on Sunday, including a Saudi Aramco facility at Ras Tanura vital to petrol exports, in what Riyadh called a failed attack on energy security global.
Ras Tanura is the largest oil plant in the world, capable of producing around 6.5 million barrels per day – nearly 7 percent of oil demand – and thus highly protected. The port includes a large storage tank farm where raw is stored before being pumped into super tankers.
The drone and missile attacks were halted and raw production appeared to be unaffected. But most recently in a series of Iranian-backed attacks by Houthi rebels, oil prices rose above $ 70 a barrel.
‘Further upside down’
The attacks are the worst against Saudi oil plants since a major processing facility and two fields came on fire in September 2019, cutting production for several days and exposing the vulnerability of the nation’s petrol industry. That was claimed by Yemen’s Houthi rebels, although Riyadh identified the branch at the Iranian archives.
“We could soon see more upside down in the market, especially as it seems that the market now needs to put prices in some kind of risk, with these attacks. building in frequency, ”ING analysts said in a report, noting that This was the second attack this month following an incident in Jeddah on March 4th.
Brent and WTI prices are up for the fourth consecutive session after OPEC and its allies decided to keep production cuts virtually unchanged in April.
Despite rapidly rising crude prices, Saudi Arabia’s oil minister has raised doubts about a tough recovery in global energy demand.
“The decision to keep quotas unchanged reflects the group’s intention to draw down investments further, without having to worry about tightening the market,” ANZ analysts said in a note. ‘suggest that they see little threat from rising production elsewhere. “
However, the energy minister in the third largest crude import in the world, India, said higher prices could threaten a consumption – led recovery in some countries.
Higher prices have also prompted U.S. energy companies to add oil and natural gas crushers for the second week in a row, energy services firm Baker Hughes Co. said Friday.