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LONDON (Reuters) – Brent crude prices rose on Thursday after Saudi Arabia suspended oil shipments across a strait of the Red Sea in response to an attack on two of its oil. US stocks fell to a 3-1 / 2 year low.
Brent crude futures rose 55 cents to 74.48 dollars per barrel at 0832 GMT, peaking at 10 days and extending their rally by a third day
. The West Texas Intermediate crude futures contract fell 4 cents to 69.26 barrels after two days of gains.
Saudi Arabia, the world's leading oil exporter, announced on Thursday that it "temporarily suspended" all oil deliveries via Bab al-Mandeb's strategic seaway after the attack on two big tankers by the Houthi movement of Yemen.
Saudi Arabia has a major export terminal at Ras Tanura – which is also home to the largest refinery in the country – on its eastern coast. It exports most of its crude oil to tankers that cross the Strait of Ormuz.
From there, many ships have to cross Bab al-Mandeb to get to the Suez Cbad heading for Europe and the SUMED pipeline in Egypt
An estimated 4.8 million barrels a day crude oil and refined petroleum products. this waterway in 2016 to Europe, the United States and Asia, according to the US Energy Information Administration.
Saudi Arabia also has another option in Petroline, also known as East-West Pipeline. east of Yanbu Port of the Red Sea for export to Europe and North America.
The 5 million barrels per day Petroline could carry about 60% of Saudi total oil exports.
Crude oil inventories in the United States plummeted more than expected to their lowest level since 2015, as exports jumped and Cushing's stocks dropped
Gross stocks dropped by 6.1 million barrels. The week ending July 20, compared to badysts' expectations for a drop of 2.3 million barrels, announced Wednesday the EIA.
At 404.9 million barrels, inventories, not counting the national emergency oil reserve, were at their lowest level since February 2015.
The Threat of a Transatlantic Trade War Is toned down after the agreement of US President Donald Trump. customs tariff on the European Union as the parties discuss the possibility of removing other barriers to trade.
(Additional report by Aaron Sheldrick, edited by Joseph Radford and Adrian Croft)
(This story was not edited by the staff of Business Standard and is generated automatically from a stream unionized.)
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