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Crude Oil Gains After Saudi Arabia Suspends Shipments

July 26, 2018 at 16:15 by Vladimir Vyun

Crude oil climbed today after Saudi Arabia suspended its oil shipments through the Bab el-Mandeb Strait. The risk premium increased after two Saudi Arabia’s tankers were attacked by Yemeni Houthi militia. It added to concerns about potential supply disruptions in the regions. Such worries were a result of the US-Iran conflict.

Markets also welcomed the news about a positive outcome of the meeting between EU Commission President Jean-Claude Juncker and US President Donald Trump. It decreased fears of trade wars, and that improved the outlook for global growth, which is crucial for oil demand. With that said, the threat of a trade war between the United States and China remains, and that bodes ill for demand for crude.

September futures for WTI crude oil gained 0.49% to $69.64 per barrel as of 16:05 GMT on NYMEX today. Brent crude rose 0.73% to $74.47 per barrel on ICE.

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