Crude oil prices started the week with a jump following U.S. attacks on the Yemen Houthi rebels, according to oilprice.com website.
Brent crude was trading early Monday at $71.10 per barrel, with West Texas Intermediate at $67.70 per barrel, both up on opening and likely to go higher later in the day, barring bearish news such as the Houthis agreeing to stop bombing ships in the Red Sea.
The attacks on ships have cost the maritime transport industry additional expenses for the longer route from Asia to Europe, which goes around Africa and adds weeks to the journey. The Houthis’ offensive has also added to fuel demand from the industry.
“We've got a reemergence of those geopolitical tensions,” IG analyst Tony Sycamore told Reuters. “If crude oil gets much above $68.50, I think that could really start to trigger some short covering in the market.”
Economic data from China, meanwhile, gave mixed signals for the world’s top importer of crude. On the one hand, industrial production slowed down over the first two months of the year. On the other, retail sales moved higher.