Oil rises on fears of rising Middle East tensions By Reuters

By Yuka Obayashi

TOKYO (Reuters) – Oil prices rose to their highest level in more than a year on Monday after a Saudi-led coalition fighting in Yemen said it intercepted an explosives-laden drone fired by the group. Houthi aligned with Iran, raising fears of a new Middle East crisis. Eastern tensions.

Hopes for further stimulus in the US and a relaxation of coronavirus lockdowns helped support the rally, after prices rose around 5% last week.

It rose 66 cents, or 1.1%, to $ 63.09 a barrel at 0004 GMT, after rising to a session high of $ 63.44, the highest since January 22, 2020.

US West Texas Intermediate (WTI) crude futures rose 86 cents, or 1.5%, to $ 60.33 a barrel. It hit the highest since January 8 last year of $ 60.77 earlier in the session.

The Saudi-led coalition fighting in Yemen said Sunday night that it intercepted and destroyed an explosives-laden drone fired by the Iranian-aligned Houthi group into the kingdom, state television reported.

“The news triggered an early rally in oil markets,” said Kazuhiko Saito, chief analyst at commodities brokerage Fujitomi Co.

“But the recovery was also fueled by growing hopes that a US stimulus and loosening of lockdowns will boost the economy and fuel demand,” he said. WTI may pull back on profit-taking as it hit a key $ 60 level, it added.

U.S. President Joe Biden on Friday pushed for the first major legislative milestone of his tenure, and asked a bipartisan group of local officials for help in his $ 1.9 trillion coronavirus relief plan.

Oil prices have rebounded in recent weeks also due to supply shortages, due in large part to production cuts from the Organization of the Petroleum Exporting Countries (OPEC) and allied producers of the OPEC + group.