With prices up, down, and all-around last week, it will be interesting to see how things shake out this week. Today oil is trading higher following new geopolitical risk in the Middle East, which highlights the dangerous territory the region has become. Crude oil is currently trading at $55.77, up 90 cents.
Fuel prices are higher as well. Diesel price are currently trading at $1.8266, up 1.4 cents from Friday’s close. Gasoline prices are $1.6661, up 0.9 cents.
Over the weekend, Yemeni Houthi rebels fired a drone at a Saudi oil field, resulting in a small fire at the facility. No casualties were reported, and so far there has been no impact to production. Saudi Arabia has labelled the attack an act of terrorism, but a retaliatory response seems unlikely. Still, the attack highlights tensions in the region – the Houthis are generally considered to be a proxy for Iranian efforts, making the series of recent Houthi attacks a problem for Middle East relations. Saudi Arabia and Iran sit on opposite sides of a millenia-long religious conflict, maintaining a constant cold war-esque relationship.