NEW YORK: Oil prices rallied for a second straight day yesterday after Saudi Arabia and its Gulf Arab allies began air strikes in Yemen, sparking fears of a bigger Middle East battle that could disrupt world crude supplies.
The military operation against Houthi rebels has not affected oil facilities of major Gulf producers. But fears the conflict could spread has stoked concerns about Middle East oil shipments.
Benchmark Brent oil jumped 5 percent before paring gains as the dollar rebounded from Wednesday’s drop, making dollar-denominated commodities costlier in other currencies.
Brent was up $2.45, or 4 percent, at $58.93 a barrel by 1700 GMT. US crude rose $1.70 to $50.91.Reuters
