Oil Prices Surge: Brent Exceeds $88 for the First Time Since October 2014

Oil prices rose today, Tuesday, to their highest levels in over seven years (October 2014), driven by concerns of potential supply disruptions after the Houthi militia attacked civilian facilities in the UAE. An analyst from ANZ Research noted in a statement, "The new geopolitical tensions are increasing the current indications of market tightness." Brent crude futures increased by 1.85% during trading to reach $88.08 per barrel, the highest level since October 30, 2014. Meanwhile, West Texas Intermediate (WTI) futures climbed 2.23% to $85.69 per barrel. Trading on Monday was limited due to a public holiday in the United States. Earlier on Monday, the coalition supporting legitimacy in Yemen announced the interception and destruction of a total of 8 drones that were launched toward Saudi Arabia. The Emirates News Agency reported yesterday three fatalities ("two Indians and one Pakistani") and six injuries due to the explosion of fuel tanks in Abu Dhabi. Additionally, the Abu Dhabi Police confirmed a fire broke out yesterday morning, leading to an explosion in three fuel transport tanks in the Musaffah ICAD 3 area, near ADNOC's storage tanks. A minor fire incident also occurred in the new construction area at Abu Dhabi International Airport. Preliminary investigations indicated the observation of small flying objects, potentially drones, that may have caused the explosion and fire in both areas. Relevant authorities have been dispatched to handle the fire, according to the Emirates News Agency (WAM). The UAE oil company ADNOC stated that it has activated necessary business continuity plans to ensure a reliable supply of products for its customers in the UAE and around the world following the incident at the fuel loading facility in the Musaffah area of Abu Dhabi.