- Brent Crude oil prices rose on Monday, after the terrorist attack on Shaybah Oilfield early this week , while traders look for any signs of easing trade tensions between China and the United States.
But a report by the Organization of the Petroleum Exporting Countries (OPEC) has raised concerns about oil demand growth.
By 02:55 GMT, Brent crude was up 64 cents, or 1.1 percent, at $59.28 a barrel, while US West Texas Intermediate (WTI) crude rose 55 cents, or 1 percent, to $55.42 a barrel.
“Oil is benefiting from the general trend of optimism that we will not witness the horrific US-china trade war scenario and after the terrorist attack by a drone on Shaybah Oilfield in Saudi Arabia alerted the markets that geopolitical tensions in the Middle East will not end soon,” Oanda New York market analyst, Edward Moya said.
Meanwhile, the White House’s economic adviser, Larry Kudlow said that the trade affairs’ representatives in China and the United states will hold talks within ten days and that if these meetings succeed… we intend to invite China representatives to come to the United States to support progress in the negotiations in order to end the trade war that has become a potential threat to global economic growth.
Saudi Minister of Energy, Industry, and Mineral Resources, Khalid Al-Falih said that the terrorist attack on one of the units of the natural gas plant in the Shaybah oilfield has caused limited damage and will not affect the Kingdom’s production and exports of oil.
Al-Falih said in a press statement: “one of the units of a natural gas plant in the Shaybah oilfield was attacked by booby-trapped unmanned drones, and the resulting fire was controlled”.
Al-Falih stressed in a statement published by the Saudi Press Agency (SPA) that the Kingdom of Saudi Arabia condemns in the strongest terms this cowardly attack, and affirms that this terrorist and sabotage act is only an extension of those actions recently targeted global oil supply chains, including oil pipelines in Saudi Arabia, Oil tankers in the Arabian Gulf, and elsewhere.