Saudi Arabia clarified that one of the country’s oil storage facilities at the port of Ras Tanura was attacked by a drone from the sea on Sunday, the drone and missile were intercepted by the Saudi side and Crude Oil production appears to be unaffected. Brent futures oil retreated from $71.38 and is now down 0.62% at $68 a barrel, while New York futures oil is down 0.57% at $65.71.
Oil prices moved higher last week after the Organization of the Petroleum Exporting Countries and allies (OPEC+) unexpectedly pledged to keep production steady in April, accelerating the upward momentum in oil prices since the beginning of the year. The move prompted numerous investment banks to raise their oil price forecasts. Goldman Sachs expects Brent crude, the global benchmark, to top $80 a barrel in the third quarter.
Giovanni Staunovo, a commodity analyst at UBS, said two factors are affecting oil prices, on the one hand, the attack did not cause damage to production foreshadowing the rally will subside, on the other hand, as tensions in the Middle East again become a topic of conversation, the risk premium has also increased, it is now difficult to say which of these two factors will eventually prevail.
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