← Go back to All Blogs
Sign in to follow this  
Followers 0
  • entries
    123
  • comments
    2
  • views
    3,268

Crude oil price spike in the early morning in Asia; a drone was behind it!

oil-price.gif.eb17366c8a0f787198fab4ae7a4da54d.gif

At 04:27 GMT on Monday, Brent crude price went up by $1.09, a rise in 1.8%. WTI crude, meanwhile, gained $1.28. Analysts may think the stimulus package announced by the Biden administration and the hopes of success of the vaccination programmes across the world are behind the spike in crude price in the morning hours in Asia.

It, however, was triggered off by a drone operation aimed at Saudi Arabia by Houthi rebels. According to Saudis, a drone, laden with explosives, was detected by the Saudi interceptors on Sunday night; they say it was destroyed on detection in the Saudi skies.

This has been the pattern whenever Houthi drones are detected in the Saudi airspace; analysts are more worried about the potential for a flare-up between Iran, the backers of Houthi rebels, and Saudi Arabia.

Since the drone was destroyed by Saudi Arabia before it damaged the intended target, markets breathed a sigh of relief and the price movements since then reflect the trend.

Asian shares rose rapidly, shortly after the short-lived spike, triggered off by a knee-jerk reaction on the part of investors. Investors are confident that the success so far on the vaccine front will continue to snowball in the coming weeks and so will the traffic on the roads.

Moreover, a strong demand from China and India is back on track, with their economies being back to where they were a year ago.

All in all, there is plenty of encouraging news for oil investors to digest at the moment and the markets reflect the trend.

By
Crude Oil Futures

Sign in to follow this  
Followers 0


0 Comments


Recommended Comments

There are no comments to display.

Guest
You are posting as a guest. If you have an account, please sign in.
Add a comment...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.