Oil deposits at an oil processing facility of Saudi Aramco, a Saudi state oil and gas company, at the Abqaiq field.
Stanislav Krasilnikov | TASS using Getty Images
Brent international benchmark crude futures appeared Monday during Asian trading hours and topped $ 70 a barrel for the first time in more than a year.
Rising oil prices came after Saudi Arabia said its oil facilities were targeted by missiles and drones on Sunday. A Houthi military spokesman claimed responsibility for the attacks.
Brent jumped 2.65% to trade at $ 71.20, while futures on U.S. crude rose 2.56% to $ 67.78.
Saudi Arabia’s energy ministry said an oil tanker farm in one of the world’s largest seaports was attacked by a drone and a ballistic missile aimed at Saudi Aramco’s facilities, according to the state news agency SPA.
These acts of sabotage are not only aimed at the Kingdom of Saudi Arabia, but also at the security and stability of energy supplies in the world and therefore in the world economy.
Ministry of Energy of Saudi Arabia
spokesman
A spokesman said neither attack caused injuries or loss of life or property, but shrapnel from the intercepted missile fell near residential areas of Dhahran city, SPA reported.
“These acts of sabotage are not only aimed at the Kingdom of Saudi Arabia, but also at the security and stability of energy supply in the world and therefore in the world economy,” the ministry said through of state media. “They affect the security of oil exports, the freedom of world trade and maritime traffic.”
Yahya Sare’e, a spokesman for the Yemeni houthis, said he carried out a “broad joint offensive operation” involving 14 drones and eight ballistic missiles.
He said on Twitter that other military sites were also targets of four drones and seven ballistic missiles, adding that “the blow was accurate.”
“We promise the #Saudi painful operations regime as long as the aggression and blockade in our country continues, ”he said in another message.
A Saudi-led coalition intervened in Yemen’s civil war in 2015 and has continued to fight Houthis in what is seen as a power war with Iran.
Houthis have reportedly intensified attacks on Saudi Arabia in recent weeks.
The Biden administration said last month that it would remove Houthi rebels, backed by Iran in Yemen, from the lists of the Foreign Terrorist Organization and Specially Designated Global Terrorists, according to NBC News.
John Driscoll, director of JTD Energy Services, told CNBC that the main effect of the attacks is psychological.
“They serve to remind us that the Middle East is vulnerable and full of tensions and rivalries that can heat up at any time,” he said in an email.
However, he said the price increase could be short-lived, noting that the Saudis said there was no major damage to infrastructure.
Driscoll also said the timing is “remarkable,” as last week the U.S. took military action against targets in Iran and Iraq.
“It simply came to our notice then [that] lines are being drawn in the sand, ”he said.