Crude cruises over 1 percent after drone attacks on Saudi Aramco

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Crude cruises over 1 percent after drone attacks on Saudi Aramco

On Tuesday, the 14th of May 2019, both US and UK crude witnessed a sharp rise, after OPEC-kingpin Saudi Arabia had told that a bunch of explosive-loaded drones launched by a part of Yemeni armed-movement aligned to Iran had attacked some oil facilities of its state-owned oil company Aramco.

In point of fact, the report, provoking worries of potential disruption of oil-supply chain, came at a time, while the oil investors across the world had been awaiting for an American Petroleum Institute (API) report, which was expected to display a sharp dwindling of US crude stockpiles by 8,00,000 barrels last week in light of latest military tension on Gulf, an analysts’ poll suggested.

The API report is scheduled to be aired by Wednesday (May 15th), GMT. 14.30, which would likely to boost crude oil price further amid OPEC supply cut and declined output from other influential OPEC members such as Venezuela and Iran over US sanction.

On Tuesday’s (May 14th) market wrap-up, the UK crude or Brent crude future had gained 1.4 percent to settle at $71.24 per barrel, while the US West Texas Intermediate Crude Futures added 1.2 percent to $61.78. Referring to rising military tension in the Middle-East, Chief Executive of Sun Global Investment, Mihir Kapadia said, “With rising tensions between Iran and the U.S., and with significant naval build-up in the region, markets are sensitive to news and can be tipped by the smallest signs of a conflict”.