When trading opened in New York today West Texas Intermediate, the benchamrk for most Middle Eastern traded crudes, was already up half a percentage point, reaching $81.28
Breaking news today that Saudi Arabian security forces had swooped on militant groups planning organised attacks on the national oil and gas infrastructure in the Eastern Province of saw yesterdays bear marketeers turn bullish.
On Wednesday crude oil prices fell by more than $1 a barrel as risk appetite and sentiment towards commodities was subdued.
However, news that over 100 militants suspected of planning attacks on oil and gas facilities spooked early London markets, with slow but steady gains posted throughout the morning’s trading.
Further gains were delivered when trading opened in New York this morning. Thanks to London’s early start WTI was already up 30 cents when New York activity began.
After 45 minutes trading in New York WTI futures for May delivery had lived up to expectations and settled above $81, posting early gains of 0.8%.
The 52 week period has seen oil swing between $44.45 and $83.25.
Given the low cost of production and high output for most producers in the GCC, the swing has not proved devastating. However, internationally, the drop off to the $40 range saw many high end projects frozen and E&P activity grind to a bare minimum.
At close of business in the Middle East on Thursday night oil stood at $81.28, with further gains expected.
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