Oil prices rise on supply concerns after a Middle East attack

Economy and stock exchange

Oil futures rose on Monday on growing concerns about supply disruptions from the Middle East's important crude production area, as investors and traders are concerned about prospects for global economic growth as US-China trade talks falter.

By 0624 GMT, global Brent crude for $ 71 a barrel was up 38 cents, or 0.5 percent, from the previous close.

US West Texas Intermediate crude futures were $ 61.73 a barrel, up 7 cents, or 0.1 percent, from the previous settlement price.

Saudi Arabia said on Monday that two Saudi oil tankers were among the ships targeted by "sabotage" off the coast of the United Arab Emirates, and condemned the attacks as an attempt to undermine the security of world oil supplies.

Saudi Arabia and the UAE ranked first and third among the largest producers respectively in the Organization of the Petroleum Exporting Countries (OPEC), according to the latest Reuters survey.

"The rising geopolitical tensions in the Middle East, coupled with the sharp drop in oil supplies from Venezuela and Iran, will continue to drive prices up," said Abhishek Kumar, head of analysis at Interfax Energy in London.

Markets are supported by Washington's push to cut Iranian oil exports to zero and reduce Venezuela's exports, where infrastructure problems also cause production to fall.

Kumar says the trade dispute between Washington and China, which has escalated last week, will still hold back prices.

The United States and China together account for 34 percent of world oil consumption in the first quarter of 2019, according to data from the International Energy Agency.

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