Brent goes for $ 70 for the first time since the pandemic began, after attacking Saudi facilities

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

As of May, Brent crude futures reached $ 71.38 per barrel in early Asian trade, the highest since January 8, 2020 and amounted to $ 71.11 per barrel up to 0255 GMT, up 1.75 dollars or 2.5%.

Crude oil in West Texas Intermediate (WTI) for April rose $ 1.60, or 2.4%, to $ 67.69. The WTI price in the first month reached $ 67.98 per barrel earlier, the highest since October 2018.

Shares in Asia also rose after the US Senate approved a $ 1.9 trillion stimulus bill, while positive economic data from the United States and China bodes well for a global economic recovery.

Yemeni Houthi forces launched drones and missiles at the center of Saudi Arabia’s oil industry on Sunday, including a Saudi Aramco plant in Ras Tanura, vital to oil exports, in what Riyadh called a failed attack on global energy security.

“We could see further growth in the market in the short term, especially since the market is now likely to have to set prices for some kind of risk premium, with these attacks increasing in frequency,” ING analysts said in a report. was the second attack this month, following an incident in Jeddah on March 4.

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

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

“The decision to keep the quotas unchanged signals the group’s intention to continue withdrawing stocks, without worrying about market overload,” ANZ analysts said in a note.

“It also suggests that I see little threat due to increased production elsewhere.”

However, the energy minister of the world’s third largest importer of crude oil, India, said higher prices could threaten the recovery driven by consumption in some countries.

Higher prices also encouraged U.S. energy companies to add oil and gas platforms for a second week in a row, energy services firm Baker Hughes Co. said on Friday.