Friday, August 28, 2015

"Oil Surges To $45 After Saudi Troops Invade Yemen"

Sure, let's put a little geopolitical risk premium back in the price.
Front WTI $45.00 up $2.44.
Brent up $1.79 at $49.35

We'll be exiting the dance floor ahead of the weekend.
Sometimes you get lucky.

From ZeroHedge:
For the 3rd day in a row, crude oil prices are spiking as the short squeeze morphs into a war premium. Heberler reports that Saudi ground troops have entered Northern Yemen and seized control of two areas in the Saada province. WTI is now above $45... 
As we noted previously, boots have been on the ground there (and tank tracks) since early July......But, as Haberler reports, forces seize control of two areas in Yemen’s Saada province in the first actual ground offensive by The Saudis...
Saudi Arabian ground troops have advanced into northern Yemen, in a bid to push back against Houthi Shia militia and forces loyal to ousted president Ali Abdullah Saleh, military and tribal sources said. This is Saudi Arabia's first ground offensive in Yemen since it launched an extensive military campaign in March targeting Houthi positions. The sources told Anadolu Agency that Saudi Arabian troops advanced into Saada province after Houthi militants recently stormed Saudi positions in the southern Saudi province of Jizan....