Oil Prices Edge Higher After Saudi Attacks

• Oil Prices Edge Higher After Saudi Attacks

Global oil prices continue to rise on Friday following Saudi Arabia attacks by the Yemeni rebel from Houthi-held capital.

The U.S. sanctions on Iran and the refusal of the administration to renew waivers granted to eight nations importing crude oil from the nation reduced global supplies as it added to OPEC+ production cuts, Venezuela sanctions and Libya crises that continue to disrupt global supplies.

“The Middle East is acting as a tinderbox for conflict,” said Stephen Brennock of oil broker PVM. “So long as this remains the case, the energy complex will continue to be supported by bullish supply-side signals.”

Price of Brent crude, against which Nigerian oil is measured, rose to by 2.9 percent to $73 a barrel, while U.S West Texas Intermediate gained 2.4 percent to $63.13 a barrel.

A Saudi-led military coalition in Yemen retaliated on Thursday by conducting several air strikes on the Houthi-held capital Sanaa.

“When tensions are this high, with the U.S. deploying a sizable military force, even a mistake or a tactical error by Iran could ignite the Middle East powder keg,” Stephen Innes, head of trading and market strategy at SPI Asset Management told Reuters by email.

“There are lots of supply risks with tensions this high.”