Oil prices slip after attack on Saudi oil industry
On Monday, the first time since the pandemic began after attacks on Saudi Arabian oil facilities, oil prices have glided after earlier soaring above $70 per barrel.
Drones and missiles were fired at the heart of the Saudi oil industry on Sunday by Yemen’s Houthi, including a Saudi Aramco facility at Ras Tanura vital to petroleum exports. Riyadh said has reported that there were no death or damage to property.
Benchmark Brent climbed as high as $71.38 a barrel in early Asian trade, its highest since Jan. 8, 2020. By 1019 GMT, it was trading down 30 cents or 0.4% at $69.06.
US West Texas Intermediate (WTI) crude was down 22 cents or 0.3% at $65.87 after touching $67.98 a barrel, its highest since October 2018.
Brent and WTI prices have increased four times consecutively.
“There are no reports of lasting damage or disruptions to oil flows … Today’s risk premium will soon fade,” said Norbert Rucker, an analyst at Swiss bank Julius Baer.
In addition, the US Senate supporting, approved a $1.9 trillion stimulus bill, which is expected to boost fuel demand as the economy gets a lift. Economic data from the United States and China were also positive.
