Saudi Crown Prince Salman’s efforts to shoring up his power base has increased the likelihood of Organization of the Petroleum Exporting Countries prolonging its production cuts at a meeting in Vienna at the end of November. Oil prices were also supported by rising tensions between Saudi Arabia and Iran after the former-led military coalition fighting the Houthi movement in Yemen closed all Yemeni land, air and sea crossings.
Riyadh and its Gulf allies have repeatedly said they hold Iran responsible for the Yemen crisis. January Brent futures soared 3.50% to finish Monday at $64.12 a barrel. For the Brent, it was the biggest single session dollar gain since December of 2016. Prices are currently consolidating within a narrow range in early Tuesday trade, with the area around $65.00 per barrel likely to act as a key upside resistance.