Investing.com - Oil prices rose moderately on Tuesday morning in Asia, following international jitters surrounding Saudi Arabia and the kingdom’s role in the disappearance of a Washington Post columnist in early October.
Crude Oil WTI Futures for November delivery gained 0.13% to $71.87 a barrel at 11:30PM ET (02:30 GMT) on the New York Mercantile Exchange, while Brent Oil Futures for December delivery also edged up 0.3% to $81.02 per barrel on London’s Intercontinental Exchange.
Saudi Arabia is facing increasing political pressure to explain its role in the disappearance of missing journalist Jamal Khashoggi, who was last seen entering the Saudi consulate in Istanbul on Oct.2.
According to sources from CNN, the kingdom is preparing a report that will admit that Khashoggi’s death stemmed from an interrogation gone wrong, and that those involved would be held responsible. The report also cited a source on Friday that Turkish authorities have audio and visual evidence that Khashoggi was murdered in the consulate. Turkish authorities entered the consulate on Monday evening to conduct a search.
Although U.S. President Donald Trump last week threatened Saudi Arabia with“severe punishment” if the kingdom was involved, he suggested on Monday after a call with King Salman that “rogue killers” could be behind the disappearance of Khashoggi. On the same day, U.S. Secretary of State Mike Pompeo headed to Riyadh.
Meanwhile, Saudi Arabia announced on Monday that it is committed to meeting India’s rising oil demand and balancing any supply imbalances in the oil market that may be caused by sanctions that the U.S. has imposed on Iran. Those sanctions take effect next month. Iran exported 1.33 million barrels per day (bpd) to countries including India and China in the first two weeks of this month, a Reuters report said.
“For now, concerns around the disappearance of a Saudi Arabian national appear to be limited to the political sphere,” said consultancy Stratas Advisors.
On the supply side, Reuters forecasted that U.S. crude inventories rose for the fourth straight week by around 1.1 million barrels in the week ended Oct. 12. Data from the American Petroleum Institute (API) and the U.S.’ Energy Information Administration (EIA) are set to be released on Tuesday and Wednesday respectively.