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Oil prices rise strongly after attacks on Saudi oil facilities

8 Mar 2021 11:04 AM

Crude oil prices rose during morning trading on Monday, Brent crude reached $71 a barrel for the first time since May 2019, while US crude oil reached its highest level since October 2018 at $67.84 a barrel.

This rise came after Saudi Arabia announced that its oil facilities were targeted by missiles and drones on Sunday, and the Saudi Ministry of Energy said that an oil tank farm in one of the largest oil shipping ports in the world was attacked by a drone, while Aramco facilities were targeted by a ballistic missile.

The attack did not result in any losses, and according to Saudi statements, there was no major damage to the infrastructure, so this rise is in prices is expected to be short-lived.

Prices had already been supported by a decision from OPEC+ to not increase output until next April. It is expected with the continuing wave of recovery in oil demand, considering the decline in the number of coronavirus infections and the expanding efforts of vaccine distribution, that oil prices will witness more bullish support, and perhaps we may see Brent crude reaching levels of $75 a barrel, and US crude reching $70 a barrel.

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