Oil tanks at an oil processing facility of Saudi Aramco, a Saudi oil and gas company, in the Abqaiq oil field.
Stanislav Krasilnikov | TASS via Getty Images
The international benchmark for Brent crude futures appeared during the Asian trading hours on Monday and rose above $ 70 a barrel for the first time in more than a year.
Rising oil prices came after Saudi Arabia said on Sunday that its oil facilities were being targeted by missiles and drones. A Houthi military spokesman claimed responsibility for the attacks.
Brent jumped 2.65% to trade at $ 71.20, while the US crude futures contract rose 2.56% to $ 67.78.
Saudi Arabia’s Ministry of Energy said a petroleum tank at one of the world’s largest oil-producing ports was attacked by a drone and a ballistic missile aimed at Saudi Aramco facilities, according to the state news agency SPA.
Such acts of sabotage are directed not only at the Kingdom of Saudi Arabia, but also at the security and stability of energy supply to the world, and therefore also at the world economy.
Saudi Arabia Ministry of Energy
spokesperson
According to a spokesperson, no attack caused any injury or loss of life or property, but shrapnel from the intercepted missile fell near residential areas in the city of Dhahran, reports SPA.
“Such acts of sabotage are directed not only at the Kingdom of Saudi Arabia, but also at the security and stability of energy supply to the world, and therefore also at the world economy,” the ministry said via state media. “It affects the security of petroleum exports, freedom of world trade and maritime traffic.”
Yahya Sare’e, a spokesman for Yemen’s Houthis, said he was conducting a “broad joint offensive operation” that included 14 drones and eight ballistic missiles.
He said on Twitter that other military sites were also targeted with four drones and seven ballistic missiles, adding that “the hit was accurate.”
‘We promise the #Saudi “Painful operations will continue as long as it continues its aggression and blockade on our country,” he said in another post.
A Saudi-led coalition intervened in Yemen’s civil war in 2015 and continued to fight the Houthis in a proxy war with Iran.
The Houthis have reportedly intensified attacks on Saudi Arabia in recent weeks.
The Biden government said last month that it would remove Iran-backed Houthi rebels in Yemen from the Foreign Terrorist Organization and specially designated Global Terrorist lists, according to NBC News.
John Driscoll, director of JTD Energy Services, told CNBC that the primary effect of the attacks is psychological.
“They serve as a reminder that the Middle East is vulnerable and full of tension and rivalry that could overheat at any time,” he said in an email.
However, he said the rise in prices could be short-lived, pointing out that the Saudis had said there was no significant damage to infrastructure.
Driscoll also said the timing was “remarkable” as the U.S. took military action against Iran and Iraq’s targets last week.
‘One feels [that] lines are drawn in the sand, ”he said.