Connect with us

Hi, what are you looking for?

Commodities & Futures

Oil Up, But Brent Falls Below $70 as Dust Settles After Attack on Saudi Facility

Commodities21 minutes ago (Mar 08, 2021 08:56PM ET)

(C) Reuters.

By Gina Lee – Oil was up Tuesday morning in Asia, with Monday’s most recent rally running out of steam as the dollar strengthened and made commodities priced in the currency more expensive.

Brent oil futures rose 0.74% to $68.50 by 8:52 PM ET (1:52 AM GMT), falling below the $70 mark after jumping past it on Monday. WTI futures were up 0.26% to $65.22. The dollar inched up on Tuesday.

Investors heaved a sigh of relief after Saudi Arabia said that Sunday’s attack on a storage tank farm at the Ras Tanura terminal was successfully intercepted and there was no immediate impact on oil output.

The attack by Yemeni Houthi rebels on the terminal, which is capable of exporting about 6.5 million barrels a day, was the most serious attack in the world’s top oil exporter since September 2019., when a key processing facility and two oil fields came under attack.

“There was a big ripper … but the fundamentals that got it there evaporated in the face of a successful defense,” Bob Yawger, head of the futures division at Mizuho Securities, told Bloomberg.

The Organization of the Petroleum Exporting Countries and allies (OPEC+)’s decision during the past week to keep production limits unchanged helped the black liquid to surge more than 30% in 2021, alongside recovering fuel demand as countries slowly recover from COVID-19. Forward oil prices also indicate further strengthening, with the Brent strip for 2022 near its highest since July 2019.

In the U.S., the recovery from February’s cold snap that hit Texas and the surrounding areas continues. Seven of 18 refineries, representing over 2 million barrels a day of crude processing capacity, returned to normal operations as of Monday.

U.S. physical oil price also continue their recovery, with Mars Blend trading in March 2021 at the largest premium to Nymex oil futures in nearly three weeks.

Investors now await U.S. crude oil supply data from the American Petroleum Institute, due later in the day.

In Asia, refiners warned that crude’s venture upwards of $70 earlier Monday could hurt demand and undercut still-tight processing margins thanks to increased volatility. Saudi Arabia has also increased official selling prices for buyers in the region from April onwards.

Oil Up, But Brent Falls Below $70 as Dust Settles After Attack on Saudi Facility

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.


Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.


Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.


Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Disclaimer: it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved