Increased Prices Of Oil Raise Fears Of Heightened Middle East Tensions
MIDDLE EAST – Prices of oil have increased in more than a year which raises fears of fresh and heightened tensions in the Middle East.
According to a report from Reuters, the increase of oil prices followed after Saudi-led coalition fighting in Yemen said that it intercepted an explosive-laden drone. The drone was fired by the Iran-aligned Houthi group.
The rally was supported by hopes for more US stimulus and an easing of coronavirus lockdowns, following the increase of priices gained at around 5% in the preious week.
Brent crude was up to 66 cents, or 1.1% at $63.09 a barrel as of 12:04 AM GMT, after climbing to a session high of $63.44, which is currently the highest since the 22nd of January, 2020.
On the other hand, the US West Texas Intermediate (WTI) crude futures gained 86 cents, or 1.5% to $60.33 a barrel. It also reached its peak since January 8 last year of $60.77.
The said Saudi-led coalition reported that the Iran-aligned Houthi group launche an explosive-laden drone, which the former intercepted and destroyed.
Chief analyst at commodities broker Fujitomi Co Kazuhiko Saito said that the news caused an early spike in oil markets, based on the report.
“But the rally was also driven by growing hopes that a U.S. stimulus and easing of lockdowns will boost the economy and fuel demand,”
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