Oil Prices Climbed After Sixth Operation of Balanced Deterrence

Oil prices climbed above $70 a barrel for the first time since the start of the coronavirus crisis, after the Sixth Operation of Balanced Deterrence that hit Saudi Arabia’s oil industry, according to Reuters.

Benchmark Brent climbed as high as $71.38 a barrel in early Asian trade, its highest since Jan. 8, 2020. By 1110 GMT, it was trading up 12 cents or 0.2% at $69.48, still hovering around its highest level in more than a year.

U.S. West Texas Intermediate (WTI) crude was up 14 cents or 0.2% at $66.23 after touching $67.98 a barrel, its highest since October 2018.

“This suggests that we could see further upside in the market in the near-term, particularly as the market probably now needs to be pricing in some sort of risk premium, with these attacks picking up in frequency,” ING analysts said in a report.

The statement of the Yemeni Armed Forces announced launching the Sixth Operation of Balanced Deterrence, using 8 ballistic missiles and 14 advanced drones.