Oil tumbled 5 per cent on Friday as Yemen's conflict looked less likely to disrupt Middle East crude shipments and investors turned their focus to talks for a potential Iran nuclear deal that could put more supply on the market.
Oil prices fell more than $1 a barrel on Friday as worries receded over the threat of disruptions to Middle East supplies due to Saudi Arabia-led air strikes in Yemen.
Goldman Sachs said the bombing of Yemen would have little effe
Top oil exporter Saudi Arabia and Gulf Opec ally Kuwait will beef up security around their oil facilities, they said, after they and other Arab allies began a military operation in Yemen.
Warplanes from Saudi Arabia and Arab allie
Saudi Arabia has begun drawing down its foreign currency reserves for the first time since 2009 to cover a record state budget deficit caused by the plunge in oil prices, data from the Saudi central bank indicated on Thursday.
Tens of b
Iran is storing at least 30 million barrels of oil on its fleet of supertankers as Western sanctions continue to keep a lid on sales, tanker market sources say.
World powers are trying to reach a framework deal
Gold rallied to a 3-1/2 week high on Thursday and silver rose nearly 3 per cent as escalating tensions in the Middle East knocked stocks and the dollar and drove investors into assets seen as lower risk, like bullion and German bonds.
Yemen shut its major seaports on Thursday, industry and local sources said, after neighbouring Saudi Arabia and Arab allies struck the Iran-allied Houthi forces who have been fighting Yemen's Western-backed president.
Brent crude oil shot up nearly 6 per cent on Thursday after Saudi Arabia and its Gulf Arab allies began a military operation in Yemen, although importers saw little immediate threat to supplies.
The strike against Houthi rebels, w
China's commercial and strategic oil storage is almost full, a Sinopec trading executive said at an industry forum on Wednesday, leaving little room for the world's No. 2 oil consumer to increase its crude imports this year.
Stronger-than-expected global oil demand should help support crude prices at around $55-$60 a barrel in the next two months despite some signs of a growing glut in the United States, a senior Gulf Opec delegate said.