Flames are burning in October 2018 at an oil processing facility in Saudi Aramco’s oil field in the Rub ‘Al-Khali Desert in Shaybah, Saudi Arabia.
Simon Dawson | Bloomberg | Getty Images
Oil prices rose to their highest level in more than a year on Monday, after a Saudi-led coalition fight in Yemen said it was intercepting an explosive drone fired by the Iranian Houthi group, fearing new tensions in the Middle East -Eastern originated.
The hope for more US stimulus and the relaxation of coronavirus closures supported the march, after prices rose by about 5% last week.
Brent crude rose 66 cents, or 1.1%, to $ 63.09 a barrel at 0004 GMT, after climbing a session of $ 63.44, the highest since January 22, 2020.
US West Texas (WTI) crude futures rose 86 cents, or 1.5 percent, to $ 60.33 a barrel. It hit the highest since January 8 last year of $ 60.77 earlier in the session.
The Saudi-led coalition fighting in Yemen said late Sunday it was intercepting an explosive-laden drone fired by the Iran-organized Houthi group into the kingdom, state TV reported.
“An early rise in the oil markets was caused by the news,” said Kazuhiko Saito, chief analyst at commodity broker Fujitomi Co.
“But the protest was also driven by growing hopes that a US stimulus and the easing of the lockdown will boost the economy and demand for fuel,” he said. WTI could be pulled back by profit-taking because it reached a significant $ 60 level, he added.
U.S. President Joe Biden is campaigning for the first major legislative performance of his term on Friday, turning to a dual group of local officials for help with his $ 1.9 billion coronavirus aid plan.
Oil prices have risen over the past few weeks as stocks increase, mainly due to production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and related producers in the OPEC + group.