Prices of oil rise after Houthi attack Saudi oil facilities

Oil prices have raised to four-month highs after an attack by Houthi militants on Saudi Arabian oil facilities destroyed 5 percent of the world’s supply. Brent crude has jumped 19 percent to $71.95 per barrel, before reducing to $66.20 per barrel. West Texas Intermediate rose by 15 percent to $63.34 before settling at $59.78 per barrel.

Crude oil prices have pared their gains after United States President Donald Trump authorised the release of US oil reserves. However, it would probably take several weeks for Saudi oil supplies to return to normal.

Saudi Arabia is responsible for more than 10 percent of global crude oil and the loss of about 5.7 million barrels a day will amount to 5 percent of the international supply.

Trump had said that the US is ‘locked and loaded’ to respond to the attack in Saudi Arabia. He tweeted, “Saudi Arabia oil supply was attacked”.

Iran-backed Houthi rebels have claimed that they are responsible for the strike. However, US Secretary of State Mike Pompeo squarely has blamed Iran. He said that the United States will work with their partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression.

However, Iranian Foreign Minister Spokesperson Abbas Mousavi has denied responsibility. He said that such fruitless and blind accusations and remarks are incomprehensible and meaningless. The remarks were designed to damage Iran’s reputation and provide a pretext for ‘future actions’ against the Islamic republic.

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