Economy

Oil prices reach 7-year-high over Mideast tensions, supply woes

Production by some members of OPEC+ group falls short of monthly targets, raising prices further

Sibel Morrow   | 18.01.2022
Oil prices reach 7-year-high over Mideast tensions, supply woes

Ankara

ANKARA 

Oil prices climbed to their highest level in the last seven years on Tuesday on supply woes after an attack by Yemen’s Houthi rebel group on Abu Dhabi, and supply disruptions from the inability of some OPEC+ countries in meeting their monthly quotas.

International benchmark Brent crude was trading at $87.50 per barrel at 0636 GMT for a 1.18% increase after closing the previous session at $86.48 a barrel.

American benchmark West Texas Intermediate (WTI) was at $84.55 per barrel at the same time for a 1.50% rise after trade in the previous session ended at $83.30 a barrel.

Both benchmarks have soared by more than $1 over rising tension in the United Arab Emirates (UAE) after three fuel tanker trucks exploded in the industrial Musaffah area in the capital Abu Dhabi earlier on Monday. A fire also broke out at a construction site at Abu Dhabi International Airport.

Houthi rebels said they carried out a military operation “deep in the UAE,” without giving further details.

The UAE said it reserves the right to respond to the Houthi attack, vowing it will not go unpunished.

The Emirates is a member of a Saudi-led coalition that has been fighting Houthi rebels in Yemen since 2015.

Higher prices have been also supported by shrinking supply, as some member countries of the Organization of Petroleum Exporting Countries and allies (OPEC+) are struggling to meet their monthly production levels, with less oil pumped than the planned 400,000 barrels per day (bpd).

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