By Nneka Nwogwugwu
Brent crude futures surged above $70 a barrel on Monday following reports of attacks on Saudi Arabian facilities.
Brent crude futures for May hit $71.38 a barrel in early Asian trade, the highest since January 8, 2020, and were at $71.11 a barrel by 02:55 GMT, up to $1.75, or 2.5 percent.
US West Texas Intermediate (WTI) crude for April rose $1.60, or 2.4 percent, to $67.69. The April WTI price touched $67.98 a barrel earlier, the highest since October 2018.
Naturenews reports that Yemen’s Houthi forces fired drones and missiles at the heart of Saudi Arabia’s oil industry on Sunday, including a Saudi Aramco facility at Ras Tanura vital to petroleum exports, in what Riyadh called a failed assault on global energy security.
Ras Tanura is the world’s largest oil terminal, capable of exporting roughly 6.5 million barrels a day – nearly 7 percent of oil demand – and as such is heavily protected. The port includes a large storage tank farm where crude is kept before it is pumped into super-tankers.
The drone and missile attacks were intercepted and crude production appeared to be unaffected. But the latest in a series of assaults claimed by Iran-backed Houthi rebels led oil prices to climb above $70 a barrel.
The attacks are the most serious against Saudi oil installations since a key processing facility and two fields came under fire in September 2019, cutting production for several days and exposing the vulnerability of the kingdom’s petroleum industry. That was claimed by Yemen’s Houthi rebels, although Riyadh pointed the finger at archrival Iran.