On Monday, for the first time since the coronavirus-induced COVID-19 pandemic began, brent crude futures breached the $70 threshold for the first time, while U.S. crude touched its more than two years high.
The development comes in the wake of attacks on Saudi oil facilities.
As of 0036 GMT brent crude futures touched $71.16 a barrel in early Asian trade. U.S. West Texas Intermediate (WTI) crude for April rose $1.32 to $67.41.
“Oil prices have spiked higher this morning after Iran-backed Houthi rebels unleashed a coordinated attack on Saudi Arabia oil facilities and military bases,” wrote Stephen Innes, chief global markets strategist at Axi in a note.
On Sunday, Houthi forces from Yemen fired drones and missiles at Saudi oil facilities, including a Saudi Aramco facility at Ras Tanura, vital to petroleum exports. Riyadh termed the attack as an assault on global energy security.
Despite rising crude prices, Saudi Arabia’s oil minister has voiced doubts on the recovery of the demand for oil.
India, the word’s third biggest crude importer, said higher prices could potentially threaten the consumption led-recovery for some countries.