RealNews

Oil Jumps 4 Percent on Saudi Bombings

Oil prices jumped more than four percent Tuesday after suicide bombings in the world’s largest oil exporter Saudi Arabia reignited concerns over Middle East supply. Fueling price gains, the International Energy Agency (IEA) said on Tuesday that global petroleum product stocks held at refineries fell heavily in the first quarter as consumers hoarded ahead of war in Iraq. U.S. light crude rose $1.15, or 4.2 percent, to $28.50 a barrel, while London’s Brent crude rose $1.01 to $25.90 a barrel. Vice President Dick Cheney said on Tuesday “some 91 people were killed” in the suspected Al Qaeda attack on expatriate housing compounds in the Saudi Arabian capital of Riyadh. The attacks revived concerns over security of supply from the Middle East, industry analysts said. Oil prices hit 12-year highs near $40 before the war in Iraq but fell sharply as oil facilities escaped severe damage. Britain warned of a “high threat” of further attacks against Western interests in Saudi Arabia — possibly involving chemical or biological weapons. “Anything that happens within Saudi Arabia is relevant to the oil market and will move the price,” said Paul Horsnell, analyst with J.P. Morgan bank. Full Story

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