Brent jumps past $ 70 for the first time since pandemic began after Saudi facilities were attacked by Reuters

By Florence Tan

SINGAPORE (Reuters) – Brent crude futures rose above $ 70 a barrel for the first time since the COVID-19 pandemic on Monday, reaching its highest level in more than two years, following reports of attacks on Saudi Arabia -Arab facilities.

Brent crude futures for May reached $ 71.38 a barrel in early Asian trading, the highest since January 8, 2020 and were $ 70.96 a barrel at 0611 GMT, rising $ 1.60 or 2.3% has.

U.S. West Texas Intermediate (WTI) oil for April rose $ 1.47, or 2.2%, to $ 67.56. The previous month’s WTI price previously reached $ 67.98 per barrel, the highest since October 2018.

(Chart: Brent Crude Oil Reaches $ 70, WTI Reaches 2-Year Highs After Reports of Attacks on Saudi Arabian Facilities: https://fingfx.thomsonreuters.com/gfx/ce/qmyvmwzemvr/BrentvsWTI.png)

Asian stocks also rose after the U.S. Senate approved a $ 1.9 billion stimulus bill, while positive economic data from the United States and China bode well for a global economic recovery.

Yemen’s Houthi forces fired on drones and missiles at the heart of Saudi Arabia’s oil industry on Sunday, including a Saudi Aramco (SE 🙂 plant at Ras Tanura essential for petroleum exports, in what Riyadh calls a failed onslaught on global energy security.

“We may see further upside in the market in the short term, especially as the market is now likely to have to price the price of some risk premium, with these attacks picking up regularly,” ING analysts said in a report, noting that it was the second attack this month after an incident in Jeddah on March 4.

Helima Croft, RBC Capital, said the latest incident highlighted how dangerous the security environment in the region remains almost 18 months after the Iranian strikes on 14 September 2019 that temporarily made half of the kingdom’s oil production offline.

(Graphically: prices are $ 70 a barrel for the first time since the start of the COVID-19 pandemic: https://fingfx.thomsonreuters.com/gfx/ce/bdwpknxbwvm/BrentCurveMar82021.png)

Brent and WTI prices are rising for the fourth consecutive session after OPEC and its allies decided to keep production cuts largely unchanged in April.

China’s crude shipment in the first two months of 2021 increased by 4.1% compared to the year after the world’s largest importer expanded its refinement capacity and because fuel demand continued to grow.

Despite rapidly rising crude prices, Saudi Arabia’s oil minister has expressed doubts about the recovery in demand.

“The decision to keep quotas unchanged indicates the group’s intention to pull stocks without tightening the market,” ANZ analysts said in a note.

“It also indicates that they see little threat from rising production elsewhere.”

However, the energy minister in the world’s third largest crude importer, India, said higher prices could threaten consumer-led recovery in some countries.

Higher prices have also encouraged U.S. energy companies to add oil and equipment for a second week in a row, energy services industry Baker Hughes Co. said Friday.