The geopolitical situation in the Middle East is showing signs of tension again.
On 12 local time, Yemen’s Houthis announced through their control of Masirah TV that the Houthis had launched 17 drones into Saudi territory that day, 10 of which targeted Saudi National Oil Company oil facilities in Jubail and Jeddah. The Saudis have yet to respond to this.
Earlier on the 11th, the Houthis claimed to have used two drones to attack King Khalid Air Base and Jizan Airport in southern Saudi Arabia. According to a notice issued by the Saudi-led multinational coalition command on 11, the coalition shot down five consecutive drones carrying explosives that day.
In 2014, the Houthis seized the Yemeni capital Sana’a, and the Yemeni government retreated to the southern region. in March 2015, Saudi Arabia and other countries intervened militarily to support the Yemeni government in its fight against the Houthis. After that, the Houthis kept using missiles and drones to attack targets in Saudi Arabia. On March 7, the Houthis claimed to have fired missiles and drones at the “heart of the Saudi oil industry,” including at a Saudi National Oil Company oil storage facility in the eastern Saudi port city of Rastanullah.
While Houthi attacks on Saudi Arabia rarely cause loss of life or widespread destruction, the frequency of attacks has increased in recent months.
After the Houthis released the news, international oil prices began to move out of their previous oscillating range and rebounded significantly, with intra-day gains in WTI crude expanding to 2% and Brent crude also rising more than 1.7% before the U.S. session. As of this writing, oil prices have retreated.
In addition, oil-exporting powerhouse Saudi Arabia will meet the demand of most Asian customers for oil loaded in May, according to sources on Monday.
This comes after some customers have asked for supply cuts due to refinery maintenance and higher oil prices. And Saudi Arabia is on track to phase out additional voluntary production cuts in the coming months based on a program agreed by oil producers such as OPEC and Russia. Some Japanese refiners have asked for supply reductions. Saudi Aramco did not comment on its supply allocations or on some customers’ requests for supply reductions.
However, the rising number of new coronavirus infections in some countries is limiting the upside of oil prices.
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