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Other factors contributing to oil’s surge this year was the U.S. exploring the possibility of tapping into their emergency reserves to stymie disruptions in oil supply, notably the slashing of Iranian oil imports. Furthermore, news broke that two Saudi Arabian oil tankers were attacked by a group of Iran-backed Yemeni rebels over a week ago, putting more upward pressure on oil prices.
Adding fuel to the rise in prices was recent news that Saudi Arabia’s crude production unexpectedly fell unexpectedly during the month of July. OPEC sources said that Saudi Arabia produced about 10.3 million barrels per day of crude oil in July, down about 200,000 barrels per day from June.
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