Oil at its highest level in 7 years due to tension in the Middle East
Oil prices rose – in early trading today, Tuesday – to their highest levels in more than 7 years, due to fears of possible disruptions in supplies, after the Yemeni Houthi movement attacked the UAE.
The oil markets were also supported by optimism about demand growth and a decline in concerns related to the omicron variable, according to the French press agency.
“The new geopolitical tension is adding to the current signs of tightness in the market,” an analyst from ANZ Research said in a note.
By 02:30 GMT, Brent crude futures rose 44 cents, or 0.5%, to $86.92 a barrel, after hitting $87 earlier, its highest level since October 30, 2014.
US West Texas Intermediate crude futures also jumped 81 cents, or 1%, from Friday’s settlement price, to $ 84.62 a barrel, not far from its highest level in more than two months of $ 84.78, which it reached earlier.
Monday’s trading was limited due to the public holiday in the United States.
The Houthi group threatened to launch attacks against more targets in the UAE, after strikes launched using drones and missiles that caused explosions on fuel trucks and killed 3 people, while the UAE said that it “reserves its right to respond to these terrorist attacks and this criminal escalation,” according to What Reuters reported.
The UAE oil company, ADNOC, said it has activated necessary business continuity plans to ensure a reliable supply of products to its customers in the UAE and around the world, after an incident at a refined products loading terminal in the Musaffah area of Abu Dhabi.