Markets & Forecasts

Saudi attacks will embed risk premium

Attacks on oil installations in Saudi Arabia have resulted in a surge in oil prices, which will have a knock-on effect on LNG Attacks on oil installations in Saudi Arabia have resulted in a surge in oil prices, which will have a knock-on effect on LNG.

By Peter Stewart Yesterday World / Global Markets 0 34598

The surge in oil prices is partly reflected fears of an immediate supply disruption. (PA)

The geopolitical risk premium is back. Oil prices surged this week following attacks by Houthi rebels in Yemen on major oil installations in Saudi Arabia – the world’s biggest oil exporter – reversing a six-month decline.

Brent futures on the Intercontinental Exchange (ICE) shot higher when traders returned to work after the attacks on Saturday, 14 September. ICE Brent front-month futures briefly soared above $71 per barrel, up by more than 20% from last week, although they now stand at around $64/bbl, a 6.3% rise from...