Oil jumped 11% last week and the Houthi attack on Aramco raises prices even further

Oil has been on the rise in both directions since the Russo – Ukrainian War,
and the Houthi attack on a Saudi Aramco oil facility made the matter even more difficult, where oil was strongly backed up

Evest follows the latest developments in the following report

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Oil has a great weekly performance 11% higher

The Houthi attack on an Aramco oil facility exacerbates geopolitical tensions in the Middle East

US oil rigs rise 7%

Oil has a great weekly performance 11% higher

World crude oil prices rose more than 11 percent last week so far because investors were concerned about the less promising prospects for world oil supplies

The previous week’s oil prices had fallen by 4.21% due to profits from investors,
but optimal conditions in different parts of the world forced the price of this commodity to rise again

The unfinished war between Russia and Ukraine remains the main cause of the worsening supply crisis after the West imposed sanctions on Russia.

In the meantime, the decline in oil inventories and the continued economic recovery contributed to enhanced demand

The price of Brent oil jumped 11.78% from the closing position this week to $120.65 per barrel.

In the meantime, the price of West Texas Intermediate crude rose by 8.79% to the US $113.90 per barrel this week

After two consecutive weeks of weakening after soaring due to the effects of the war, world oil managed to recover this week.

In just one week gold has experienced a correction, meaning it tends to stabilize or face a marked increase with other commodities

Oil prices jumped to new highs earlier this month as investors responded to Western sanctions against Russia regarding its crude oil export policy

Some market watchers say that if Western sanctions on Russian oil are prolonged,
this could lead to a supply crisis in the world, which, of course, could lead to increased inflation

The International Energy Agency warned last week that Russian oil production could cease by 30% within weeks.

It is believed that the world may be under attack from a supply crisis

On the other hand, Morgan Stanley raised its price forecast for Brent crude by the US $20 per barrel for the third quarter of 2022 to the US $120 per barrel,
predicting a decline in the Russian production of about 1 million barrels per day as of April

The Russian oil production decline will be greater than the global demand decline

The Houthi attack on an Aramco oil facility exacerbates geopolitical tensions in the Middle East

While Russia and Ukraine remain at war, geopolitical risks in the Middle East are rising again

Yemeni rebels, the Houthis

claimed to have carried out the attack with drones and missiles on the oil storage facility of Saudi Aramco,
the state oil company, in the West Bank city of Jeddah

World oil prices

which have been weak recently, have risen in response to the news, with Brent crude futures above $120 per barrel

Saudi Arabia’s energy ministry said that Saudi Arabia is not responsible for any shortage of crude oil on the global market After Yemeni rebels destroyed the oil facilities of Saudi energy giant Aramco

The price of Brent oil for May delivery in London stabilized, up to $1.62 or 1.4 percent to $120.65 per barrel on Friday.

West Texas Intermediate (WTI) crude

for May delivery in New York stabilized, up to $1.56, or 1.4%, at $113.9 a barrel

Andrew Lebow, president of Lipow Oil Associates, a Houston-based energy agency, stated that attacks by Yemeni rebels had become more frequent,
noting that “the market should avoid the supply of Russian crude oil and worry about attacks.

There is concern about the impact on Saudi energy

According to multiple media footage, Aramco’s oil tank facility in Jeddah, the western coastal city of Saudi Arabia,
was attacked on the 25th of this month, and fire smoke rose in the sky

Iranian-backed Yemeni

rebels admitted to the attack, claiming that they used drones and missiles to attack Saudi energy facilities

The Saudi-led coalition said that two oil tanks were on fire as a result of an attack on an oil products distribution station in Aramco,
but fortunately, no one was injured

The coalition immediately launched a military operation on 26, through airstrikes on Yemen,
and Saudi media reported that the move was aimed at “protecting global energy sources and ensuring natural supply chains

The attacks come with rising oil prices since Russia’s invasion of Ukraine on February 24 and disrupted global supplies as Russia came under Western sanctions

For his part, a source said that the administration of US President Joe Biden is studying another version of oil from the Strategic Petroleum Reserve,
which, if achieved, may be greater than 30 million barrels sold earlier this month

US oil rigs rise 7%

The number of oil rigs in the country rose to 531 from March 19 to 25,
up 7 percent from the previous week, according to weekly data from oil field services company Baker Hughes

The number of oil rigs in the US increased by 207 last year

On Friday, The of Brent oil barrel, which closed Thursday at $119.03, closed at $119.24 and WTI closed at $112.58 per barrel.

On Thursday, WTI closed at $112.34

Oil prices rose more than 1 percent on Friday to exceed $120 a barrel as traders weigh
the impact of a missile attack on an oil plant in Saudi Arabia against a possible launch of oil reserves by the United States

Oil jumped 11% last week

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