Oil prices jump as Yemeni oil terminal captured

Brent crude price jumps above $64 per barrel Thursday after Al-Qaeda militants capture major oil terminal in southern Yemen.

Oil prices jump as Yemeni oil terminal captured

World Bulletin / News Desk

Oil prices have jumped more than 4 percent to reach a record high for the year as Al-Qaeda captured an oil terminal in southern Yemen

The price of the global benchmark Brent crude oil rose 4.5 percent, from $62.01 per barrel when it opened Thursday to reach $64.82 per barrel at 1845 GMT, setting the highest record for 2015. 

On Thursday, Al-Qaeda are reported to have captured a major oil terminal in southern Yemen, which exports an average of 130,000 barrels of oil a day, according to various media reports. 

The oil terminal is a major hub for Yemen's largest province Hadramawt, where Al-Qaeda is said to have established a presence in its capital Mukalla. 

Yemen has been in turmoil in the last seven months, since Houthi fighter overran the capital Sanaa last September, and continued to increase their presence in other parts of the country, Local tribes and Al-Qaeda are also involved in the conflict. 

Al-Qaeda is said to be active in Yemen, as a group linked to the organization claimed responsibility for a car bombing that left at least 40 Houthi fighters dead on April 10 in Yemen's southern Shabwah province.

Saudi Arabia has begun a military campaign against the Houthis on March 25, while Saudi-led coalition warships in the Gulf of Aden pounded Houthi positions in southern city of Aden on April 10, raising risks on oil transit.

Strategic importance

The Gulf of Aden, located east of the Bab-el Mandab strait, connects the Gulf to the Red Sea. The strait is the fourth biggest choke point in the world with 3.8 million barrels per day of oil transit. This figure represents four percent of the total 94.5 million barrels of daily oil production. 

The risks against the safe passage of crude tankers through the strait put an upward pressure on oil prices. 

The day after the Saudi-led coalition started its military campaign against the Houthis in Yemen on March 26, oil prices rose nearly 6 percent. 

After the warships pounded Aden on April 10, Brent oil price jumped nearly 3 percent to reach above the $58 per barrel mark, while experts believe that the climb in prices will continue if the conflict intensifies. 

Güncelleme Tarihi: 17 Nisan 2015, 12:23