Oil prices rebound after Houthis say they attacked Saudi tanker

By Robert Harvey

LONDON, Aug 5 (Reuters) - Oil prices roseate connected Wednesday aft Yemen's Iran-aligned Houthi rebels said they attacked a Saudi lipid tanker successful ‌the Red Sea, denting hopes of a de-escalation successful Iran warfare hostilities that ‌could reconstruct shipping postulation and lipid flows successful the Middle East.

Brent crude futures were up $1.51, oregon 1.9%, ​at $80.87 a tube by 1123 GMT. U.S. West Texas Intermediate futures gained 90 cents, oregon 1.19%, to $76.67.

The Houthis said they had launched a rocket onslaught connected a Saudi lipid tanker disconnected the seashore of Yanbu, a cardinal larboard for Saudi crude lipid exports. That ‌drove lipid prices higher connected ⁠Wednesday, UBS expert Giovanni Staunovo said. Saudi officials did not respond instantly to a petition for comment.

The reports of the onslaught dented ⁠investor hopes of a de-escalation successful the Middle East struggle aft Qatar said connected Tuesday that mediators were making advancement with efforts to extremity the war. That drove down lipid prices ​by ​5% connected Tuesday, with Brent closing beneath $80 a ​barrel for the archetypal clip since ‌July 13.

Tehran, meanwhile, denied that bid talks were nether way, contrary to assertions by U.S. President Donald Trump.

"While the contiguous geopolitical premium has unwound, the broader proviso representation warrants caution," said Priyanka Sachdeva, caput of marketplace insights astatine Phillip Nova.

Before the warfare started, astir 20% of the world's lipid and liquefied earthy state passed done the ‌Strait of Hormuz.

"The main sticking constituent appears to ​be whether Iran volition proceed to importune connected a ​degree of power implicit the waterway, ​and whether the U.S. volition basal its crushed and garbage that ‌outcome," IG analysts said successful a ​note.

U.S. crude and gasoline ​inventories roseate portion distillate stocks fell past week, marketplace sources said connected Tuesday, citing information from the American Petroleum Institute.

Crude stocks roseate by astir 2.7 cardinal ​barrels successful the week to ‌July 31, the sources said.

Elsewhere, China further relaxed controls connected substance exports ​in August.

(Reporting by Robert Harvey successful London, Helen Clark successful Perth and ​Jeslyn Lerh successful SingaporeEditing by David Goodman)