Oil hits 2015 peak as Saudis resume strikes on Yemen

London, Apr 25 : Brent oil prices jumped this week to the highest level so far this year, as the latest Saudi-led air strikes on Yemen stoked supply tensions in the crude-rich Middle East. Elsewhere, precious metal gold sank on sliding safe-haven demand as a result of easing tensions over Greece. Brent prices today hit a four-month peak of $65.80 per barrel, the highest level since December 10, as Saudi-led coalition warplanes again hit Yemen. “Saudi Arabia’s renewed bombing campaign in Yemen sent crude oil higher, with Brent rising to new 2015 highs,” said CMC Markets analyst Jasper Lawler. The Saudi-led coalition launched more deadly strikes in Yemen Thursday despite a demand by Iran-backed rebels for a complete halt to the raids as a condition for UN-sponsored peace talks. The new wave of strikes killed at least 23 rebels as the World Health Organisation said the overall death toll from fighting since late March topped 1,000.“Crude oil prices rebounded to reach four-month highs following news that Saudi Arabia renewed its aerial assault in Yemen to target the Shiite rebels,” added senior energy analyst Myrto Sokou at the Sucden brokerage in London. “Brent front month futures rallied … Amid renewed concerns of potential disruption in oil shipping across the Middle East.” Yemen is not a major oil-producing country, but its coast forms one side of the Bab el-Mandeb Strait, the key strategic entry point into the Red Sea through which some 4.7 million barrels of oil pass each day on ships headed to or from the Suez Canal.The Saudi-led coalition declared Tuesday that the first phase of its operations against the Huthis and their allies was over, but there has been no end to its strikes. Crude futures had fallen Wednesday after weekly US petroleum data showed higher crude inventories but marginally lower production. US commercial crude reserves in the period ending April 17 rose for the 15th straight week, adding 5.3 million barrels, the Department of Energy said. It added that the increase lifts US oil supplies to the highest level on record. However, production slipped by 18,000 barrels a day, following a 20,000 barrel drop in the previous week.Dealers are hoping a slowdown in US shale output could alleviate a global crude oversupply, which led to a collapse in prices of more than 50 percent between June and January.