Flames burn off at an oil processing facility in the Saudi Aramco oil field in the Rub ‘Al-Khali Desert in Shaybah, Saudi Arabia, in October 2018.
Simon Dawson | Bloomberg | Getty Images
Oil prices soared to their highest in more than a year on Monday after a Saudi-led coalition fight in Yemen said it intercepted an explosive-laden drone fired by the Iranian-linked Houthi group, sparking fears of renewed tensions in Yemen. the Middle East.
Hopes for more US stimulus measures and an easing of the coronavirus lockdowns helped support the rally after prices rose about 5% last week.
Brent crude rose 66 cents, or 1.1%, to $ 63.09 a barrel at 0004 GMT after climbing to a session high of $ 63.44, the highest level since January 22, 2020.
US West Texas Intermediate (WTI) crude oil futures rose 86 cents, or 1.5%, to $ 60.33 a barrel. It hit its highest since Jan. 8 last year of $ 60.77 earlier in the session.
The Saudi-led coalition fighting in Yemen said late on Sunday that it intercepted and destroyed an explosive-laden drone fired at the kingdom by the Iran-linked Houthi group, state television reported.
“An early spike in the oil markets was caused by the news,” said Kazuhiko Saito, chief analyst at commodity broker Fujitomi Co.
“But the rally was also fueled by growing hope that a US stimulus and relaxation of lockdowns will boost the economy and fuel demand,” he said. WTI can be pulled back by taking profits as it hit a key USD 60 level, he added.
US President Joe Biden pushed for the first major legislative feat of his tenure on Friday, and turned to a bipartisan group of local officials for help with his $ 1.9 trillion coronavirus plan.
Oil prices have also risen in recent weeks as supplies have become tight, largely due to production cuts from the Organization of the Petroleum Exporting Countries (OPEC) and related producers in the OPEC + group.