WTI Crude Oil Trading Bullish Following Attack on Saudi Oilfield
Arslan Butt • 1 min read
At the start of a new trading week, WTI crude oil prices are trading bullish over reports of an attack on a Saudi oil facility by Yemeni separatists over the weekend. At the time of writing, WTI crude oil is trading at around $55.38 per barrel.
On Saturday, a Saudi oilfield was attacked via a drone by Yemeni separatists from the Houthi group, escalating tensions in the Middle East region. Although Saudi Arabia confirmed that oil production remained unaffected, the attack did result in a gas plant catching fire.
However, crude oil’s gains remain limited over escalating trade tensions and fears that the global economy is heading towards a recession. OPEC has also cut its forecast for global oil demand by 40,000 bpd to 1.10 million bpd in 2019 in its latest monthly report.
Trade tensions continue to remain in focus with Trump stating last week that he was not yet ready to sign a trade deal with China. This gave rise to more concerns among oil traders that the US-China trade war could drag on for a longer period of time, and possibly further dent demand for crude oil.