Oil Prices Jump Again After Yemen’s Latest Retaliatory Operations in Saudi Depth

Oil prices jumped more than $3 on Monday, with Brent crude climbing above $111 a barrel, after the Yemeni Armed Forces carried out the 2nd Siege-breaking Operation that targeted Saudi energy facilities in response to the continued aggression and siege imposed on Yemen.

Brent crude futures were up $3.40, or 3.2%, at $111.33 a barrel by 0958 GMT, adding to a 1.2% rise last Friday.

US West Texas Intermediate (WTI) crude futures rose $3.65, or 3.5%, to $108.35, extending a 1.7% jump last Friday.

Prices moved higher ahead of talks this week between European Union governments and U.S. President Joe Biden in a series of summits that aim to harden the West’s response to Moscow over its invasion of Ukraine.

Over the weekend, attacks by Yemen’s Armed Forces caused a temporary drop in output at a Saudi Aramco (2222.SE) refinery joint venture in Yanbu, feeding concern in a jittery oil products market, where Russia is a key supplier and global inventories are at multi-year lows. read more

The latest report from the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, together known as OPEC+, showed some producers are still falling short of their agreed supply quotas.

In response to US-Saudi escalation, siege and preventing entry of fuel ships, the Yemeni Armed Forces have launched retaliatory attacks inside Saudi Arabia.

On Sunday, the Armed Forces launched the 2nd Siege-breaking in three phases. In its first phase, the Armed Forces hit a number of vital and sensitive Saudi facilities of Aramco in Riyadh, Yanbu and other areas, while in its second phase they targeted a number of vital and important targets in Abha, Khamis Mushait, Jizan, Samtah and Dhahran Al-Janoub. In the 3rd phase the Armed Forces targeted Aramco in Jeddah and vital targets in Jizan.

The Yemeni Armed Forces warned the Saudi enemy that they would expand their scope of targets in the next phase.

Source: Websites.