Brent jumps past $ 70 for the first time since the pandemic began after Saudi facilities were attacked

SINGAPORE (Reuters) – Brent crude oil futures skyrocketed above $ 70 a barrel for the first time since the start of the COVID-19 pandemic Monday, as US crude reached its high in more than two years after reports of attacks on Saudi Arabian facilities.

Brent crude oil 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 at 0255 GMT, up $ 1.75 or 2 , 5%.

U.S. West Texas Intermediate Crude Oil (WTI) for April rose $ 1.60 or 2.4% to $ 67.69. First month WTI price reached $ 67.98 a barrel previously, the highest level since October 2018.

Asian stocks also rallied after the US Senate passed a $ 1.9 trillion stimulus bill, while positive economic data from the United States and China bode well for a global economic recovery.

Yemeni Houthi forces fired drones and missiles at the heart of Saudi Arabia’s oil industry on Sunday, including a Saudi Aramco facility in Ras Tanura that is vital to petroleum exports, making Riyadh an unsuccessful attack. on global energy security.

“We could see further upside in the market in the near term, especially as the market is now likely to need to charge some sort of risk premium, with these attacks becoming more common,” ING analysts said in a report. this was the second attack this month following an incident in Jeddah on March 4.

Prices for Brent and WTI have risen for the fourth consecutive session after OPEC and its allies decided to leave production cuts largely unchanged in April.

Despite rapidly rising crude oil prices, Saudi Arabia’s oil minister has expressed doubts about the recovery in demand.

“The decision to keep quotas unchanged indicates the group’s intention to continue to take stocks without worrying about a tight market,” ANZ analysts said in a note.

“It also suggests that they see little threat from rising production elsewhere.”

However, the energy minister of the world’s third largest crude oil importer, India, said higher prices could threaten the consumption-led recovery in some countries.

Higher prices have also encouraged US energy companies to add oil and natural gas platforms for the second straight week, energy services firm Baker Hughes Co said Friday.