September 22, 2020

Oil Futures Rise amid Unreliable Fuel Supply from Saudi Arabia

Oil prices around the globe are starting to rise amid fears that the oil supply from Saudi Arabia won’t remain consistent. The Saudi Arabia Aramco Oil Facility officials have repeatedly said that the oil supplies would remain stable and the Aramco facility would restart operation by the end of this month. However, the major buyers of Saudi Arabia’s oil are still skeptical of it’sclaims. The Brent crude futures increased to $65.50/barrel, whereas US West Texas Intermediate (WTI) crude futures were at $58.61.

The oil supply to the global markets was disrupted after a drone attack on the Saudi Aramco Oil Facility, which is the largest oil facility in the world. Immediately after the attack, US President Donald Trump blamed Iran for it, which gave rise to further tensions in the region. The Iranian foreign Ministry however, immediately rejected the claims and said that they were not involvedand the attacks originated from Yemen and were carried out by the Houthi rebels.

The tensions in the region are still high; the US has decided to station more troops in Saudi Arabia in order to strengthen the air defenses of the country. The US Secretary Mike Pompeo said on Sunday 22nd September 2019, that the troops there are only for defense purposes.

Add comment