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Brent rose about 1.4% in early trade on Aug. 19 after a Houthi drone attack on the Shayba oilfield in Saudi Arabia caused a fire at a gas liquids facility without disrupting crude production.
Brent was trading near $59.44. Analysts said weak demand from the US-China trade row would limit any sustained rally.
A geopolitical risk premium lifts crude and energy costs, which feed into diesel, freight and fertilizer. Because production was unaffected, the lift is likely to fade unless supply is disrupted.
thenationalnews.comJennifer GnanaAug 19, 2019After 656 past bullish geopolitics events, Crude Oil (Brent) moved a median +1.9% over 5 sessions (63% higher; middle half -2.7% to +6.6%), and +0.7% over 20.
After 626 past bullish geopolitics events, Crude Oil (WTI) moved a median +2.1% over 5 sessions (62% higher; middle half -2.3% to +8.5%), and +1.6% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
