Oil Prices at 3-Year High After Explosions Reported in Saudi Arabia

April 11, 2018

 

Air defense forces in Saudi Arabia reportedly intercepted a ballistic missile over the capital Riyadh on Wednesday.

Oil prices dropped on EIA news of building crude supplies, then rose after reports of the missile interception, joining investors’ serious concerns about President Trump’s warning of a possible US attack in Syria.

WTI jumped more than 2% at midday, to reach nearly $67 a barrel, breaking a 2018 high of $66.66; Brent was up 1.5% at more than $72 a barrel.

The concern is whether the US plans surgical strikes on Syria or a wider attack that includes Iran or Iran-backed forces.

State media said Houthi forces, controlling most of northern Yemen, launched the missiles at the Saudi defense ministry.

Houthis claimed the missile launch was in retaliation for Saudi-led air raids aimed at destroying Iran-backed weapons movements.

On Twitter feeds Wednesday, residents in Riyadh confirmed they heard three loud explosions.

There are also reports of two other missiles intercepted over the southern areas of Saudi Arabia.