Business Brent crude futures surged above US$70 a barrel on Monday for the first time since the COVID-19 pandemic began, while U.S. crude touched its highest in more than two years, following reports of attacks on Saudi Arabian facilities.
FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson
08 Mar 2021 06:35PM (Updated: 08 Mar 2021 07:40PM) [h=2]Share this content[/h]
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LONDON: Oil prices climbed above US$70 a barrel for the first time since the start of the coronavirus crisis, after the U.S. Senate passed a US$1.9 trillion economic stimulus package and a Yemeni group attacked Saudi Arabia's oil industry.
Benchmark Brent climbed as high as US$71.38 a barrel in early Asian trade, its highest since Jan. 8, 2020. By 1110 GMT, it was trading up 12 cents or 0.2per cent at US$69.48, still hovering around its highest level in more than a year.
AdvertisementAdvertisementU.S. West Texas Intermediate (WTI) crude was up 14 cents or 0.2per cent at US$66.23 after touching US$67.98 a barrel, its highest since October 2018.
Brent and WTI prices have climbed for four consecutive sessions.
GRAPHIC: Brent crude tops US$70, WTI hits 2-year highs after reports of attacks on Saudi Arabian facilities - https://fingfx.thomsonreuters.com/gfx/ce/qmyvmwzemvr/BrentvsWTI.png
The U.S. Senate passed on Saturday President Joe Biden's US$1.9 trillion COVID-19 relief plan, lifting prospects for the economy and fuel demand that has been pummelled by the pandemic.
AdvertisementAdvertisementAdding support, Houthi forces in Yemen fired drones and missiles at Saudi Arabia, including a Saudi Aramco facility at Ras Tanura that is vital to petroleum exports. Riyadh said there were no casualties or loss of property.
"This suggests that we could see further upside in the market in the near-term, particularly as the market probably now needs to be pricing in some sort of risk premium, with these attacks picking up in frequency," ING analysts said in a report.
Prices have been buoyant since the Organization of the Petroleum Exporting Countries, Russia and their oil producing allies, known as OPEC+, agreed last week on broadly sticking with output cuts despite rising crude prices.
GRAPHIC: Brent crude oil prices top US$70/barrel for the first time since the COVID-19 pandemic began - https://fingfx.thomsonreuters.com/gfx/ce/bdwpknxbwvm/BrentCurveMar82021.png
(Reporting by Noah Browning and Florence Tan; Editing by Ana Nicolaci da Costa and Edmund Blair)
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08 Mar 2021 06:35PM (Updated: 08 Mar 2021 07:40PM) [h=2]Share this content[/h]
[h=2]Bookmark[/h]
LONDON: Oil prices climbed above US$70 a barrel for the first time since the start of the coronavirus crisis, after the U.S. Senate passed a US$1.9 trillion economic stimulus package and a Yemeni group attacked Saudi Arabia's oil industry.
Benchmark Brent climbed as high as US$71.38 a barrel in early Asian trade, its highest since Jan. 8, 2020. By 1110 GMT, it was trading up 12 cents or 0.2per cent at US$69.48, still hovering around its highest level in more than a year.
AdvertisementAdvertisementU.S. West Texas Intermediate (WTI) crude was up 14 cents or 0.2per cent at US$66.23 after touching US$67.98 a barrel, its highest since October 2018.
Brent and WTI prices have climbed for four consecutive sessions.
GRAPHIC: Brent crude tops US$70, WTI hits 2-year highs after reports of attacks on Saudi Arabian facilities - https://fingfx.thomsonreuters.com/gfx/ce/qmyvmwzemvr/BrentvsWTI.png
The U.S. Senate passed on Saturday President Joe Biden's US$1.9 trillion COVID-19 relief plan, lifting prospects for the economy and fuel demand that has been pummelled by the pandemic.
AdvertisementAdvertisementAdding support, Houthi forces in Yemen fired drones and missiles at Saudi Arabia, including a Saudi Aramco facility at Ras Tanura that is vital to petroleum exports. Riyadh said there were no casualties or loss of property.
"This suggests that we could see further upside in the market in the near-term, particularly as the market probably now needs to be pricing in some sort of risk premium, with these attacks picking up in frequency," ING analysts said in a report.
Prices have been buoyant since the Organization of the Petroleum Exporting Countries, Russia and their oil producing allies, known as OPEC+, agreed last week on broadly sticking with output cuts despite rising crude prices.
GRAPHIC: Brent crude oil prices top US$70/barrel for the first time since the COVID-19 pandemic began - https://fingfx.thomsonreuters.com/gfx/ce/bdwpknxbwvm/BrentCurveMar82021.png
(Reporting by Noah Browning and Florence Tan; Editing by Ana Nicolaci da Costa and Edmund Blair)
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