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Oil prices rose on Friday, rebounding from early losses as traders rushed to buy after a missile attack hit Saudi Arabia’s state-run oil company Aramco’s storage facility.

Brent crude rose $1.20, or 0.7 per cent, to $119.92 a barrel and U.S. West Texas Intermediate (WTI) crude was up $1.04, or 0.9 per cent, to $113.34. Both had dropped more than $3 earlier. Both benchmarks were heading for their first weekly gains in three weeks. Brent was on track for an 10 per cent weekly jump and WTI for an 8 per cent rise.

A huge plume of black smoke was seen rising in Jeddah where oil giant Aramco has several oil facilities, witnesses said.

A military spokesman said Yemen’s Houthis launched missiles and drones on Aramco facilities in Jeddah, adding that the attacks targeted Ras Tanura and Rabigh refineries.

“We’re seeing unrest in Russia and Ukraine and now we’re seeing it once again over on Saudi and if we continue to see attacks on both areas, no one wants to be short oil right now,” said Dennis Kissler, Senior Vice President of trading at BOK Financial.

“Supplies are tight. So any added any added bullish news that comes into the market can make the market move higher,” he added.

The attack comes just five days after the Houthi group fired missiles and drones at Saudi energy and water desalination facilities, causing a temporary drop in output at a refinery but no casualties.

Another Aramco distribution plant was also attacked in the Red Sea city of Jeddah, leading to a fire in one of the tanks, according to the Saudi-led coalition.

Saudi Arabia said then it would not bear responsibility for any global oil supply shortages due to the attacks on its oil facilities.

With global stockpiles at their lowest since 2014, analysts said the market remained vulnerable to any supply shock.

Oil prices had slipped earlier as exports from Kazakhstan’s CPC crude terminal partially resumed and after the EU held off on imposing an embargo on Russian energy as members remained split on the issue.

The United States and Britain, both less reliant on Russian oil than the European Union, have imposed bans on Russian crude. The EU faces a bigger dilemma over whether to impose sanctions.

Prices also remained pressured by the potential for another co-ordinated release of oil from storage by the United States and its allies to help to calm oil markets.

The United States said it will work to ensure additional liquefied natural gas (LNG) volumes for the EU market of at least 15 billion cubic meters (bcm) in 2022, with increases expected in the future.

China’s state-run Sinopec Group has suspended talks for a major petrochemical investment and a gas marketing venture in Russia, sources told Reuters, heeding a government call for caution as sanctions mount over the invasion of Ukraine.

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