Brent rallies to two-week high on Saudi supplies worries

Economies.com
2018-07-30 13:24PM UTC

Brent powered up in American trade to two-week highs, resuming the gains after a hiatus last Friday, amid concerns of a drop in Saudi supplies after suspending shipments through the Bab Al Mandeb strait in the Red Sea, adding to the expected hit to Iranian exports after US sanctions go into effect. 

 

As of 13:19 GMT, Brent rose to $75.00 a barrel from the opening of $74.29, with an intraday low at $74.11, and the highest since July 16 at $75.09. 

 

Brent closed down over 0.2% on Friday, the first loss in four days on transient profit-taking. 

 

Oil prices marked a 1.3% profit last week, the first such weekly profit in a month after Saudi Arabia halted crude shipments moving through Bab Al Mandeb, while US crude inventories hit 3-1/5 year lows. 

 

Saudi oil minister Khalid Al Faleh said in a press statement that Saudi Arabia is suspending all oil shipments through Bab Al Mandeb strait until navigation becomes safe, after two giant Saudi oil freighters were attacked by the Houthi rebels in Yemen, with each ship carrying two million barrels. 

 

Otherwise, analysts expect Iranian supplies to take a hit of 500 to 700 thousand bpd starting November when US sanctions officially take place. 

 

In fact, if US President Donald Trump upped his already strong pressure on countries that import crude from Tehran, supplies could fall by as much as 2 million bpd according to some forecasts. 

Commodities News

Gold News

Commodities

Gold hits fresh record highs, marking a 6% quarterly profit
2024-03-28 20:28PM UTC
Gold Prices Gold prices rose on Thursday to fresh record highs while the dollar eked out gains ...
Copper News

Commodities

Copper edges up while facing pressures from Chinese demand concerns
2024-03-28 16:45PM UTC
Copper prices rose modestly on Thursday while the dollar gained ground, with ongoing concerns about ...
Oil News

Commodities

Oil prices extend gains after strong US growth data
2024-03-28 13:03PM UTC
Global Oil Prices Global oil prices extended their gains in American trade on Thursday and hit ...

Commodities Technical Analysis

Oil Analysis

Commodities

End of day crude oil price forecast update - 28-03-2024
2024-03-28 17:43PM UTC
Crude oil price breached 82.40$ strongly to rally upwards and approach our waited target at 83.56$, ...
Gold Analysis

Commodities

End of day gold price forecast update - 28-03-2024
2024-03-28 17:43PM UTC
Gold price rallied upwards strongly to succeed touching our waited target at 2222.86$ and attempts ...
Brent oil Analysis

Commodities

Brent oil price forecast update 28-03-2024
2024-03-28 10:19AM UTC
Brent Oil Price Analysis Brent oil price fluctuates within tight track since morning, settling ...