SINGAPORE: Oil prices rose in Asia Monday, fuelled by sustained unrest in the crude-rich Middle East, while also gaining support on hopes that declining US production will ease a global supply glut, analysts said.
US benchmark West Texas Intermediate for May delivery gained 78 cents to $56.52 while Brent crude for June gained 77 cents to $64.22 in late-morning trade.
“Escalating conflicts in Yemen, a drop in the US rig count and weak US inventory data led to benchmark prices making significant gains,” said Sanjeev Gupta, head of the Asia-Pacific oil and gas practice at business consultancy firm EY.
Clashes between rebels and pro-government forces, and Saudi-led air strikes, killed at least 85 people in Yemen on Sunday, medics and military sources said.
Yemen is a small crude producer that sits along the Bab al-Mandab Strait, through which about 3.8 million barrels of oil per day are transported.
The country has been gripped by turmoil since Shiite rebels launched a power takeover in Sanaa in February.
Dealers are also reading a drop in US oil rig activity as a sign of a production slowdown that could alleviate global oversupply and push prices up, analysts said.
