Oil Prices Surge After Attack on Saudi Oil Facility


Brent crude futures jumped 1.46% following the attack to trade at $70.37 per barrel as of 8:09 AM GMT.

Crude OilBrent crude oil prices surged above $70 for the first time in a year after Houthi military forces executed an attack on Saudi Aramco production facilities. According to Saudi news agencies, the attack was carried out by eight drones and fourteen ballistic missiles. Though a company spokesperson said that nobody was harmed and no property was damaged, shrapnel from the intercepted missile fell near residential areas in the city of Dhahran.

Yahya Sare’e, a spokesperson for the Houthi rebels, claimed that the attack included hits on other military sites which were done by seven ballistic missiles and four additional drones, and that “the hit was precise.”

Brent crude futures jumped 1.46% following the attack to trade at $70.37 per barrel as of 8:09 AM GMT. US WTI futures were up 1.27% to $66.93 per barrel. Oil prices have risen steeply in recent trading sessions, prompted by production outages in Texas, increased demand for travel, and OPEC’s decision last Thursday to maintain its production cuts through April in an effort to support higher prices. Following OPEC’s most recent meeting, prior production cuts were expected to remain stable, with the exception of production by Russia and Kazakhstan, which will increase their oil production by 130,000 barrels per day and 20,000 barrels per day, respectively. Following OPEC’s decision, both Brent crude and US WTI jumped over 4%.

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U.S. Stimulus Bill Heads to Final Vote

The highly-anticipated $1.9 trillion stimulus package is expected to be passed by U.S. lawmakers this week. Dow futures rose on Sunday in advance of the bill’s passage, which includes additional stimulus checks (albeit for a smaller percentage of the U.S. population), increased child tax credits, and aid to state and local governments, as well as an extension of unemployment benefits until September. The bill’s passing is expected to cause aftershocks in the U.S. Treasury market, where rising bond yields in recent days have caused a widespread selloff in the stock market and has sent stock prices falling swiftly and steeply.

Better-than-expected jobs data released Friday helped temper some of the recent losses, but analysts expect that the selloff has not yet hit its bottom.

The U.S. Dollar Index was up 0.13% early Monday morning in London, with the dollar gaining 0.06% against the yen to trade at 108.41. The dollar also gained against the British pound and the euro, with the common currency easing 0.201% against the dollar to $1.189, and the pound sliding 0.029% to $1.384.



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