Attack On Oil Facility Extends Recent Rally

Crude futures are higher in Asia on Monday, WTI is up $1.41 at $67.50/bbl while brent is up $1.48 at $70.85/bbl.

• Oil jumped higher at the reopen after Saudi Arabia reported a drone attack on a petroleum storage tank at the Ras Tanura port. The attack, launched by Iranian-backed Houthi rebels from Yemen galvanized fears over the security of the global oil supplies Ras Tanura has storage capacity of 33m bbls exports all of Saudi Arabia's crude oil grades, in addition to exporting condensates and refined products. The attack follows a missile launch on March 4 by the Houthis rebels on Saudi Aramco facilities at the port city of Jeddah.
• Oil prices also received support from news that a $1.9tn stimulus package had cleared the US Senate, and was now awaiting final approval from the House of Representatives with a vote expected on March 10.