Geopolitical tensions continue to brew in the Middle East
It is being reported that unidentified drones had attacked two pumping stations belonging to Saudi Aramco, saying that there is 'limited' damage done. Saudi oil minister Khalid Al-Falih has already responded saying that Yemen's Houthis has carried out the attack but notes that its oil exports are to continue as per normal after the attack.
Oil prices have surged on the back of the headlines here with WTI rising to highs of $61.45 now, up by nearly 0.7% on the day. Rising geopolitical tensions have been a key factor in underpinning oil prices since the weekend and it doesn't look like it'll rest any time soon. However, the fact that the disruption here isn't going to interrupt production and supply should mean that prices shouldn't skyrocket but heightened sensitivity in the region will no doubt keep markets on edge.
Update: Al-Falih now says that the East-West pipeline will be closed as a precautionary measure. That is continuing to underpin oil as it now rises by more than 1% on the day to $61.65.
