WTI Crude Oil Climbs Higher After Houthi Rebels Attack Saudi Oil Facilities
Arslan Butt • 1 min read
WTI crude oil prices are climbing higher in early trading on Tuesday amid rising geopolitical tensions in the Middle East after Houthi rebels once again launched missile attacks on Saudi Arabian oil facilities. At the time of writing, WTI crude oil is trading at around $59.97 per barrel.
On Monday, Iran-backed and Yemen-based Houthi rebels stated that they had attacked key targets across the Saudi region, including Saudi Aramco facilities located in Jeddah and Jubail. The rebels are said to have launched as many as 17 drones and two ballistic missiles at parts of the kingdom, raising concerns of potential disruption of oil supply.
WTI crude oil prices also found support from the demand side, with economists anticipating a drop in US crude inventories for the third consecutive week; although fuel and distillate stockpiles are expected to have risen higher during the past week. There are also concerns of US oil production increasing, with the EIA expecting US shale output to grow by around 13,000 bpd by next month which could increase fears of oversupply in markets.
Over the past few sessions, crude oil has been trading in a range as optimism about recovery in the economy and oil demand across the US and China is offset by worries about a resurgence in fresh infections across parts of Asia. Oil traders are also concerned about the slow pace of rollout of the COVID-19 vaccine across Europe, which is in the grip of a third wave and has implemented lockdowns and restrictions across several parts, impacting oil demand.