Oil Heading for 7% Weekly Gain

Oil Heading for 7% Weekly Gain Oil Heading for 7% Weekly Gain

Oil prices were on track to jump more than 7% this week, their biggest weekly rise in months, on rising Middle East tensions after a key Saudi Arabian supply hub was knocked out in an attack last weekend.
A Saudi-led coalition launched a military operation north of Yemen’s port city of Hodeidah, as the United States worked with Middle East and European nations to build a coalition to deter threats after the Saudi attack. 
Brent crude is on track to rise around 7% this week, the biggest weekly gain since January. The front-month November contract was at $64.53 a barrel, up 13 cents, Reuters reported. 
US West Texas Intermediate crude futures were up 37 cents to $58.50 a barrel, set to post a gain of over 6% for the week. 
“Investors should probably assume that oil stabilizes for now in the $60-65 per barrel range, though the risk is to the upside,” said Christopher Wood from Jefferies. 
“The central message from the attacks is vulnerability of the Saudi infrastructure”. 
Saudi production dropped by almost half after the attack on Saturday, Sept. 14, crippled a major oil processing facility. Its oil minister has pledged to restore lost production by the end of this month. 
In the United States, meanwhile, torrential rain from Tropical Storm Imelda has forced a major refinery to cut production and to shut a key oil pipeline, terminals and a ship channel in Texas. 

Add new comment

Read our comment policy before posting your viewpoints