Crude oil futures rose to a seven-year high on Tuesday (Jan. 18) following reports of attacks by Houthi rebels on the United Arab Emirates (UAE). Concerns are growing that the situation in the Middle East is worsening and affecting oil supplies.
- WTI crude futures were up $1.61, or 1.9%, at $85.43 a barrel.
- BRENT crude futures were up $1.03, or 1.2%, at $87.51 a barrel
Crude oil futures rose after Houthi rebels launched an attack on the UAE interior near the Abu Dhabi National Oil Company (ADNOC) late Monday night. Three oil transporters caught fire and exploded.
The UAE is the third-largest oil producer in OPEC, and ADNOC controls Abu Dhabi’s oil production, which covers most of the country’s crude oil. In addition, the UAE is the eighth largest oil producer in the world, producing 4% of the world’s oil output at nearly 4 million barrels per day.
Investors will keep an eye on Thursday’s weekly oil inventory released by the EIA.
The Spot Market is Open
Wednesday, January 19, 2022