The flames are burning in an oil processing plant in the Saudi Aramco oil field in the Rub ‘Al-Khali desert in Shaybah, Saudi Arabia, in October 2018.
Simon Dawson | Bloomberg | Getty Images
Oil prices rose to a one-year high on Monday after a Saudi-led coalition fighting in Yemen said it had intercepted an explosive-laden drone launched by Iran-aligned Houthi, raising fears of fresh tensions in Iran. Middle East.
Hopes for more US stimulus and a reduction in coronavirus blockage helped support the rally, after prices gained about 5% last week.
Crude brent rose 66 cents, or 1.1 percent, to $ 63.09 a barrel at 0004 GMT, after rising to a session high of $ 63.44, the highest since January 22, 2020.
US West Texas Intermediate (WTI) crude futures gained 86 cents, or 1.5%, to $ 60.33 a barrel. It hit its highest level since January 8 last year, with $ 60.77 earlier in the session.
The Saudi-led coalition, which is fighting in Yemen, said late Sunday it had intercepted and destroyed an explosive-laden drone launched by the Houthi group aligned with Iran to the kingdom, state television reported.
“Early growth in oil markets has been triggered by news,” said Kazuhiko Saito, chief analyst at commodity broker Fujitomi Co.
“But the rally was also driven by growing hope that a US stimulus and a reduction in blockages would increase the economy and fuel demand,” he said. WTI can be withdrawn by making a profit because it has reached a key level of $ 60, he added.
US President Joe Biden put pressure on Friday for the first major legislative fulfillment of his term, calling on a bipartisan group of local officials to help with his $ 1.9 trillion coronavirus aid plan.
Oil prices have also risen in recent weeks as supplies worsen, largely due to reduced production by the Organization of the Petroleum Exporting Countries (OPEC) and allied producers in the OPEC + group.