Chris Faulkner, CEO & Chairman, Breitling Energy gives his observation on the impact of the Middle East battle on oil prices.
According to Reuters Wire Services oil prices rallied for a second straight day on Thursday after Saudi Arabia and its Gulf Arab allies began air strikes in Yemen, sparking fears of a bigger Middle East battle that could disrupt world crude supplies.
The military operation against Houthi rebels, who have driven the president from Yemen’s capital Sanaa, has not yet affected oil facilities of major Gulf producers.
But fears the conflict could spread has stoked concerns about the security of Middle East shipments, even as analysts and commentators doubt the probability of an all-out war amid continued signs of crude oversupply.
Benchmark Brent oil jumped 5 percent early in the session before giving back some of that in European trade as the dollar rebounded from Wednesday’s drop, making commodities denominated in the greenback costlier in other currencies.
In New York, Brent was up $2.30, or 4 percent, at $58.78 a barrel by 12:00 p.m. EDT (1600 GMT) as the dollar held its strength, particularly to the euro. U.S. crude rose $1.60 to $50.81.
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