LONDON. — Oil prices rose sharply yesterday, supported by supply risks as the market assesses the fallout from last weekend’s drone attacks on Saudi oil infrastructure.
Brent crude futures LCOc1 gained 96 cents to $64.56 a barrel by 1347 GMT, while US West Texas Intermediate crude CLc1 was up 51 cents at $58,62 a barrel. The attacks knocked out around half of Saudi Arabia’s crude production and severely limited the country’s spare capacity, a cushion for oil markets in any unplanned outage.
“Global available spare capacity is extremely low at present following the weekend attacks, leaving little room for additional outages, which tends to be price supportive,” UBS oil analyst Giovanni Staunovo said.
Earlier this week Saudi Arabia set out a time-line for a resumption of full operations, saying it had restored supplies to customers at levels prior to the attacks by drawing from its oil inventories. — Reuters.