Oil prices hovered near their highest level in three years on Thursday amid escalating concerns from the Middle East after President Trump’s warning to Russia and Saudi Arabia’s interception to missiles fired from Yemen.
Crude oil futures traded at $66.71 a barrel after hitting a peak of $67.43 on Wednesday, the highest level this year and the highest since December 2014.
Brent crude set a new top at $73.08 a barrel the previous session, while currently trading around $71.80.
“Get ready Russia, because they will be coming, nice and new and “smart,” Trump warned Russia on Wednesday after Russia pledged to shoot down all missiles fired at Syria.
Trump's warning raised concerns that the world’s superpowers may get involved in a new World War in Syria.
Saudi Arabian defense systems also said it had intercepted a number of missiles fired from Yemen, over the skies of Riyadh, adding to worries about disruption of oil supplies form the oil-rich Middle East.
Oil prices have taken advantage of the retreat in U.S. dollar, as the dollar index slipped to a low of 89.02, the lowest level in nine sessions.
However, some analysts believe that oil prices would come under pressure once again as the market is still suffering from a glut of production.
U.S. crude inventories edged up by 3.3 million barrels last week to 428.64 million barrels, the EIA government report released on Wednesday showed.
The same report signaled a rise in U.S. oil output to a new fresh record of 10.53 million barrels per day.
Asian shares tumbled today as the geopolitical tensions prompted
investors to leave risky assets.