Oil prices surge amid news of tanker attack in UAE Port

# 12:23
14 May 2019

he price of oil has recently been rising following news of the US’ increased push to curb Iran’s oil trade and Washington's sanctions against another oil-exporting country – Venezuela, sparking fears of a shortage in crude supply, ONA reports citing Sputnik.

World oil prices reacted to the news of an incident that resulted in damage to several oil tankers in the UAE, with prices rapidly increasing during the first half of the day. Both popular oil blends, Brent and WTI had gained around 3% by 13:00 UTC, with Brent futures reaching the price of $72.53 per barrel and WTI — $63.27 per barrel.

CNN suggested that the price surge could have been caused by fears of a supply crunch due to "sabotage", as the UAE put it, because as an incident left several oil tankers damaged. Although the event didn't result in casualties or a spill, it could still affect the delivery of the oil shipments.

However, another round in the tariff war between China and the US occurred on 13 May, with Beijing imposing between 10% and 25% tariffs on $60 billion worth of US goods, thereby breaking the price rise. Later, prices took a nosedive after 13:30 UTC, prompting the price of Brent to plummet to $69.75 and WTI's to $60.68 per barrel in just three hours and resulting in a roughly 4% drop compared to the midday spike.