This week has been among oil’s best for 2018, as each new day the oil found itself higher than the previous close.
Today the push comes as a result from Saudi Arabia limiting supply through one of its outlets. There has been an attack on two of the Saudi tankers nearby, which caused the OPEC member to put shipping from there on hold for now. The place in question is the Bab al-Mandeb strait on the Red Sea, which was attacked by Yemeni forces who support Iran. This strait is the main link between Saudi Arabia’s biggest facility in Ras Tanura and the Suez Canal which opens access to Europe and North Africa. Saudi Arabia has other facilities it can use while the bab al-Mandeb is closed, but until the reorganization of traffic is implemented, a shortage in supply will be experienced on the market.
Furthermore, the price also decreased due to lower inventories in the United States.
The Brent crude was trading at $74.48, while the WTI reached $69.26 per barrel.
