Oil Rises as Drones Strike Saudi Pipeline and Trade Fears Recede
Added 05-14-19 01:04:02pm EST - “State-owned Saudi Aramco halted operations after the strike on two pumping stations, which was claimed by Iran-backed rebels from neighboring Yemen. The attack followed damage to four oil tankers anchored off the United Arab Emirates…” - Finance.yahoo.com
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(Bloomberg) -- Oil climbed as drones struck Saudi Arabia’s main cross-country crude pipeline, while President Donald Trump insisted a trade deal with China is still within reach.
Futures gained as much as 1.8% in New York, amid assaults on the world’s chief crude exporter. State-owned Saudi Aramco halted operations after the strike on two pumping stations, which was claimed by Iran-backed rebels from neighboring Yemen. The attack followed damage to four oil tankers anchored off the United Arab Emirates on Sunday.
Trump, meanwhile, insisted Tuesday that “we will make a deal,” after announcing plans to meet with Chinese President Xi Jinping in June. That helped spur a rebound for global equities that lifted crude in its wake.
“There’s really not a good reason for crude to trade lower right now,” said Bob Yawger, futures director at Mizuho Securities USA. “You’ve got growing geopolitical risk, and you’re risk-on right now in the equity markets.”
Oil markets have turned more volatile this month as crude is buffeted by the specter of a full-blown trade war, a combustible Middle East and output disruptions from Norway to Nigeria. U.S. drilling activity and a pending decision by the Organization of Petroleum Exporting Countries and its allies on whether to extend production curbs are taking a back seat to the various crises.
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