Burnt oil rose above $ 71 per barrel. Barrel, after Saudi Arabia said the world’s largest raw terminal was attacked, though production was perpetrated by being unaffected after missiles and drones were intercepted.
Futures in London jumped as much as 2.9% after rising 4.9% last week. The kingdom said a storage tank at Ras Tanura in the country’s Gulf Coast was targeted on Sunday by a drone from the sea. The terminal exports approx. 6.5 million barrels a day – almost 7% of the demand for oil – and as such is one of the world’s most protected installations.
The attack follows a recent escalation of hostilities in the Middle East region after Yemen’s Houthi rebels launched a series of attacks on Saudi Arabia. The new US government has also carried out airstrikes in Syria last month at places it said were linked to Iran-backed groups.
Oil collection accelerated last week after Saudi Arabia and OPEC + made a surprising promise to keep production stable in ril. The move prompted a number of investment banks to raise their price forecasts, with Goldman Sachs Group Inc. estimated the global benchmark, Brent will reach $ 80 per. Barrel in the third quarter.
The broader market is also supported by bullish Chinese export data and the US stimulus outlook. President Joe Biden is at the forefront of his first legislative victory as Parliament prepares to pass its $ 1.9 trillion Covid-19 relief plan, the second-largest economic stimulus in U.S. history.
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“It’s a perfect mix of bullish news at the moment,” said Warren Patterson, head of commodity strategy at ING Bank NV in Singore. “It seems that these attacks are gaining momentum in frequency, so the market may need to price a certain risk premium.”
Brent’s rapid time spread of 70 cents a barrel in reversal, a bullish market structure where the contract in the front month trades higher than later shipments. It averaged 58 cents in setbacks last week.
The Sunday attack is the most serious against Saudi Arabian oil installations since a key treatment plant and two oil fields came under fire in September 2019, cutting oil production for several days and exposing the vulnerability of the Saudi oil industry. This attack was claimed by the Houthi rebels, although Riyadh pointed the finger at Iran.
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