The start of a military operation in Yemen by Saudi Arabia and its allies has fueled another climb in oil prices early Thursday. U.S. benchmark crude jumped $2.18 to $51.39 a barrel in electronic trading on the Nymex, while in London Brent zoomed $2.39 higher to $58.87, Reuters reports.
Yemen’s own oil production isn’t worrying markets as the conflict ramps up there, but the country’s proximity to Saudi Arabia and Saudi involvement in the fighting is causing concern, Bloomberg reports.
A new analysis of the nation’s 40-year-old ban on crude oil exports found that the policy “presents a binding constraint” on the U.S. oil market, creating artificially low prices for lighter, sweeter crudes extracted from shale.
The report, released by Rice University’s James A. Baker Institute for Public Policy, differs from previous studies on the issue, as it examines prices for several varieties of crude oil beyond the benchmark West Texas Intermediate and Brent crude.
The approach allowed the research to analyze the potential economic value of different grades of U.S. crude on an international market, study author Kenneth Medlock said.
Oil prices soared Wednesday amid concerns of spreading turmoil in the Middle East, after Saudi Arabia reportedly began amassing troops near its border with strife-torn Yemen.
Driven weeks ago from the capital by Shiite rebels, President Abed Rabbo Mansour Hadi abandoned the country entirely, leaving on a boat from the southern port of Aden, Yemeni security officials said. His departure came after air strikes rained down on his troops, while on the ground, the rebels were advancing toward his position.
Benchmark U.S. crude rose $1.70 to close at $49.21 a barrel in New York.
Oil prices were holding up early Wednesday despite reports that the U.S. and China are approaching their limits on crude storage. U.S. benchmark West Texas Intermediate edged down 4 cents to $47.47 a barrel in electronic trading on the Nymex, while in London Brent gained 32 cents to $55.43, Reuters reports.
BISMARCK, N.D. (AP) — Two years ago, North Dakota was so flush with money from the energy boom that lawmakers spent over $1 million to spruce up the cafe at the state Capitol. Now, the fall in oil prices has tightened the revenue tap and the nation's fastest-growing state is contemplating a dose of austerity.
The price of U.S. crude rose slightly Tuesday as traders anticipated the release of weekly supply information. Benchmark U.S. crude rose 6 cents to close at $47.51 a barrel in New York.
Brent crude, a benchmark for international oils used by many U.S. refineries, fell 81 cents to close at $55.11 in London. The price slipped on weak Chinese manufacturing data that suggested lower global demand.
Weakness in the U.S. dollar overshadowed disappointing Chinese data and reports of record Saudi crude production to help oil prices reverse an early decline Tuesday. U.S. benchmark crude gained 60 cents to $48.05 a barrel, while London Brent rose 64 cents to $56.56, Reuters reports.
The nuclear industry believes the six percent output from nuclear plants that could be credited towards emissions reduction goals under the Environmental Protection Agency’s Clean Power Plan is an arbitrary number that should be changed, The Hill reports.
Gains in the dollar were putting pressure on oil prices early Monday, despite continued fighting in Yemen. U.S. benchmark crude was down 33 cents to $56.82 a barrel in electronic trading on the Nymex, while in London Brent lost 47 cents to $64.81 a barrel, Reuters reports.
Antitrust charges filed by Michigan Attorney General Bill Schuette against Chesapeake Energy Corp., as well as allegations the company misled landowners over leases, will be settled by a $25 million payment, The Wall Street Journal reports.
Santa Catalina Island is sinking slowly and gradually, according to a study from a Stanford University researcher, who also suggests that the situation could pose a tsunami threat for the Los Angeles area in the far distant future, the Los Angeles Times reports.