Oil jumps more than 1% after Shaybah Oilfield terrorist attack

An Archive photo of Oil Rig
An Archive photo of Oil Rig
  • Brent Crude oil prices rose on Monday, after the terrorist attack on Shaybah Oilfield early this week , while traders look for any signs of easing trade tensions between China and the United States.

But a report by the Organization of the Petroleum ExportingCountries (OPEC) has raised concerns about oil demand growth.

By 02:55 GMT, Brent crude was up 64 cents, or 1.1 percent, at $59.28 a barrel, while US West Texas Intermediate (WTI) crude rose 55 cents, or 1 percent, to $55.42 a barrel.

"Oil is benefiting from the general trend of optimism that we willnot witness the horrific US-china trade war scenario and after the terroristattack by a drone on Shaybah Oilfield in Saudi Arabia alerted the markets thatgeopolitical tensions in the Middle East will not end soon," Oanda New Yorkmarket analyst, Edward Moya said.  

Meanwhile, the White House's economic adviser, Larry Kudlow said thatthe trade affairs' representatives in China and the United states will holdtalks within ten days and that if these meetings succeed… we intend to inviteChina representatives to come to the United States to support progress in thenegotiations in order to end the trade war that has become a potential threatto global economic growth.

Saudi Minister of Energy, Industry, and Mineral Resources, KhalidAl-Falih said that the terrorist attack on one of the units of the natural gasplant in the Shaybah oilfield has caused limited damage and will not affect theKingdom's production and exports of oil.

Al-Falih said in a press statement: "one of the units of a naturalgas plant in the Shaybah oilfield was attacked by booby-trapped unmanneddrones, and the resulting fire was controlled".

Al-Falih stressed in a statement published by the Saudi PressAgency (SPA) that the Kingdom of Saudi Arabia condemns in the strongestterms this cowardly attack, and affirms that this terrorist and sabotage act isonly an extension of those actions recently targeted global oil supply chains,including oil pipelines in Saudi Arabia, Oil tankers in the Arabian Gulf, andelsewhere.

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