Crude oil rose as Saudi Arabia reported drone attacks on pumping stations, the latest escalation in West Asia tensions after tankers were hit by sabotage over the weekend.
Futures rose 1.2% in New York, reversing Monday’s drop. Unidentified drones attacked two pumping stations belonging to Saudi Aramco, forcing the oil company to suspend operations in the area to assess what the kingdom said was limited damage. The incident follows damage to oil tankers anchored off the United Arab Emirates on Sunday.
Oil volatility has jumped this month as crude is buffeted by the spectre of a full-blown trade war on the demand side, while production disruptions from Norway to Nigeria are throwing the supply outlook into doubt.
