On Tuesday, oil prices rose after reports that unidentified aircraft attacked two Saudi Aramco pumping stations.
New York-brokered unpaid income grew by 43 cents, or 0.7 percent, to $ 61.47 per barrel from 9:22 ET (13:23 GMT), while Brent’s gross futures, benchmark for oil prices outside the US, traded 67 cents, or 1.0%, to $ 70.90.
Crude returned positively, reaching dense levels, after Saudi Arabian oil minister Khalid Al-Flaih announced that “limited” damage had been made and accused Iran-backed Houthi insurgents in carrying out the attack.
Al-Falih added that the East-West pipeline will be shut down as a preventive measure.
Investing.com Investor Ellen Wald noted that the pipeline carries about 5 million barrels a day from the fields in eastern Saudi Arabia to the Yanbu Red Sea port.
She said, “With that shutdown, it is not surprising to see oil to this extent,” adding that prices may continue to move higher depending on how long the pipeline has gone.
Tensions in the Middle East, which increase the risk of supply tightening, have bolstered oil prices, although the escalating trade tensions between the US and China have put a downward pressure on oil for the previous three sessions.
Raising the title tariffs among the world’s two largest oil consumers has raised fears of deteriorating global economic slowdown, reducing demand for processing.
Doubts also remain on OPEC’s decision in June to continue manufacturing cuts. In addition to the tightening of the war between bullish factors – Middle East tensions, US sanctions on Iran and Venezuela – and bearish concerns as a result of Sino-US trade talks.
Saudi Arabia is thought to favor the continued decline in output in order to maintain current price levels.
“Oil prices may enter a new phase of volatility for 2019, breaking away from the most stable first quarter rallies,” said a senior analyst at Investing.com, named Barani Krishnan.
Krishnan warned that seasonal spraying during the US summer car racing season may be followed by another US oil price increase and ultimately higher shares in the second half of the year.
In its monthly report released on Tuesday, OPEC also said its output fell by 3,000 barrels a day (bpd) to 30,031 million bpd, while members with quota in the production cut agreement had a 150% compliance. Meanwhile, OPEC did not make any changes to its global forecast for rising oil demand for 2019.
Unprocessed US stocks were also on the deck, as the US Department of Oil reported weekly data later Tuesday. For official government data Wednesday, consensus expects a draw of 2.13 million barrels.
In other energy trade, gasoline revenue grew by 0.5% to $ 1,9729 in gallons by 7:38 AM ET (11:38 GMT), while heating oil went 0.2% to $ 2.0415 in gallons.