Oil is trading higher continuing yesterday's rally on news that Saudi Arabia's Air Force launched together with a coalition air strikes in Yemen to counter Iran-backed Houthi rebels. Markets tend to react nervously to geopolitical instability in the region - especially if Saudi Arabia, OPEC's biggest producer, is involved. Concerns over an escalating conflict in the region (a direct conflict between Iran and Saudi Arabia).together with a weaker U.S. dollar sent oil prices soaring up.
Brent Crude added 4.20% currently trading at USD58.85 a barrel. On January 13th Crude set a low at USD45.19. West Texas Intermediate added 4.31% currently quoted at USD51.33.
Oil prices declined sharply in recent months as worldwide supply exceeds demand in a period of low global economic growth, pushing stockpiles to record highs and weighing on prices.