Thursday, March 26, 2015

10 Sunni Nations are attacking the Houthis in Yemen by Air

Brent surged 4.8 percent and West Texas Intermediate climbed for a fifth day. Saudi Arabia led a coalition of 10 Sunni-ruled nations in airstrikes against Shiite Houthi positions after an appeal from Yemen’s President Abdurabuh Mansur Hadi. The 10 countries produced about 21 million barrels of oil a day in October, or 22 percent of global supplies, according to Energy Information Administration data.
end quote from:

Oil Rises to 3-Week High as Saudi Arabia Bombs Targets in Yemen

I hadn't realized that 10 Sunni nations are involved in the Air war of bombing the Houthis in Yemen. Since the Houthis are armed by Iran and are Shia like Iran (even though they are a minority in Yemen) this is now a proxy war directly between Iran(aligned with the Houthis) and these 10 Sunni nations. So, it is easy to understand why this might raise oil prices some world wide in the interim. Because it could escalate over time possibly into an all out war between these 10 nations and Iran.

1 comment:

Christie Campagna said...

Brent, the benchmark index for global crude oil prices, plunged by $1.28 to $61.8 per barrel and it was at $61.3 earlier in March. Future of Brent (LCOc1) climbed 18% last month, which is the highest monthly increment in almost six years.