Riyadh: Crude and Brent oil prices continue rising on Monday following a missile attack on facilities owned by energy giant Aramco in Saudi Arabia while OPEC+ also stick to its voluntary production cuts. Resulting which a barrel of crude oil jumped 2.11 percent to $70.82 a barrel, the highest since May 2019.
A missile and drone attack targeted the heart of Saudi Arabia’s oil industry on Sunday in an assault claimed by Yemen’s Huthi rebels, a new escalation in the six-year conflict. The attack came as the Saudi-led military coalition bombed Yemen’s Huthi-controlled capital Sanaa after intercepting a separate flurry of cross-border Huthi drones and missiles.
The rising hostilities underscore a dangerous intensification of Yemen’s conflict between the coalition-backed Yemeni government and the Iran-backed Huthis, despite a renewed US push to end the war.
The Saudi defence ministry said it had intercepted a drone targeting a petroleum storage yard at Ras Tanura, one of the world’s biggest oil ports, and a ballistic missile aimed at Aramco facilities in Dhahran city in eastern Saudi Arabia.
The attacks did not result in any casualties or damage, it added, without specifying who was behind them.
Furthermore, the surge in Brent and Crude prices was also the result of Saudi and Russian-led group who announced to left production unchanged. Oil traders strongly believe that oil prices are heading higher now as the OPEC+ cartel is not ready to significantly disrupt the oil supply.
Oil traders were expecting that Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) will increase the production cut that it put in place to support the oil price when oil futures crashed into negative territory in April, last year. The number up for production cut debate was 1.5 million barrels-per-day (bpd).
However, the decision on Thursday by the OPEC and its allies to raise production only modestly was a show of “remarkable restraint,” said Bjornar Tonhaugen, head of oil markets for Rystad Energy.