Oil held above $71 a barrel as traders assessed tensions between the U.S. and Saudi Arabia after the disappearance of a regime critic threatened to damage relations between the two nations.
Crude futures in New York were little changed after rising 0.6 percent Monday. Saudi Arabia began an internal investigation into the disappearance of journalist Jamal Khashoggi, with the case threatening to spark a geopolitical crisis. Meanwhile, America’s attendance at a Saudi investment conference remains uncertain after an exodus of sponsors and participants, though President Donald Trump floated the idea that “rogue killers” might be behind the disappearance and possible murder.
West Texas Intermediate for November delivery fell as much as 32 cents to $71.46 a barrel on the New York Mercantile Exchange, and was at $71.59 at 2:30 p.m. in Singapore. The contract climbed 44 cents to $71.78 Monday. Total volume traded was about 30 percent below the 100-day average.
Brent for December settlement dropped 0.1 percent to trade at $80.69 a barrel on the London-based ICE Futures Europe exchange. Prices increased 0.4 percent to $80.78 Monday. The global benchmark crude traded at a $9.27 premium to WTI for the same month.
Source : Bloomberg