Brent Oil Surpasses $70 for the First Time in 2 Years... Aftermath of Houthi Rebels' Attack on Refinery Facilities

Highest Price Since May 2019... Higher Than Pre-COVID Levels
Houthi Attacks Saudi Oil Facilities Since Last Week... Pressuring US for Negotiations

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The Yemeni Houthi rebels announced that they attacked oil facilities in the eastern oil fields of Saudi Arabia, causing North Sea Brent crude oil to surpass the $70 mark for the first time since May 2019. The eastern oil fields of Saudi Arabia house the world's largest refining facilities and oil export ports, raising concerns that the already tight supply situation will further fuel the rise in international oil prices.

On the 7th (local time) at the London ICE Futures Exchange, North Sea Brent crude rose $1.11 (1.6%) during the session to $70.65, breaking the $70 barrier for the first time since May 19, 2019. Brent crude started the day with a sharp rise after the Yemeni Houthi rebels announced attacks using drones and ballistic missiles on major oil fields in eastern Saudi Arabia, including Ras Tanura and Dammam.

According to foreign media such as the AP News, the Houthi rebels stated in a press release that they launched 14 drones and 8 ballistic missiles at major oil fields in eastern Saudi Arabia, including Ras Tanura and Dammam. Major foreign media reported that two residents near Dammam heard explosions around 8 p.m. that day, confirming that the airstrike actually took place.

The Saudi military announced that it intercepted 12 drones and 2 ballistic missiles launched by the Houthi rebels and conducted airstrikes with fighter jets on Houthi bases around Sana'a, the capital of Yemen. Saudi state media, without specifying the exact location of the airstrikes, reported that "12 armed drones and 2 ballistic missiles targeting civilians and facilities were intercepted."

The Saudi Ministry of Energy stated, "The oil storage tanks in Ras Tanura were attacked by drones, but there were no casualties or damages," attempting to downplay the incident. However, Brent crude rose amid concerns over oil supply disruptions. In particular, Ras Tanura, which was targeted by the Houthi airstrike, is home to the world's largest refinery and offshore oil loading facilities, raising fears that Saudi Arabia's crude oil supply could be significantly restricted. In September 2019, the Houthi rebels also attacked Saudi Arabia's largest oil fields, Abqaiq and nearby Khurais, with drones and ballistic missiles, causing Saudi Arabia to temporarily reduce its daily oil production by more than half, which caused international oil prices to fluctuate sharply.

Earlier, on the 4th, the Houthi rebels carried out an airstrike on refining facilities in Jeddah, western Saudi Arabia, in retaliation after the U.S. Department of State imposed sanctions on some Houthi leaders last week. The U.S. Department of State had removed the Houthi rebels from the terrorist organization list last month and engaged in contacts to promote a ceasefire, but after the Houthis intensified their offensive against the Yemeni government forces, the U.S. additionally sanctioned some Houthi leaders.

This content was produced with the assistance of AI translation services.