By Adedapo Adesanya
The prices of crude oil dropped on Friday following reports that Saudi Arabia has declared a partial cease-fire in Yemen, a move that could significantly ease tensions across the region.
This action raised hopes that the long-term war could come to an end and could also bring down tension with Iran.
Oil prices were already pressured by the announcement earlier this week that Saudi Arabia had returned to the level of production from before the attacks despite reports that suggested that it could take months for production to return to normal
Brent Crude slipped by 1.25 percent or 77 Cents to trade at $60.97 per barrel, while the US West Texas Intermediate (WTI) Crude lost 58 Cents or 1.03 percent to trade at $55.83 per barrel.
The Houthi rebels that Saudi Arabia is fighting in Yemen with support from the United Arab Emirates (UAE) said at the end of last week that drone attacks on Saudi targets would stop if the Kingdom stopped targeting its positions with air strikes.
The Houthi proposal came a day after the Saudi government launched an attack on Houthi-held Hodeida—Yemen’s key port, which was under rebel control despite numerous attempts by the Saudi-led coalition to wrest control of the critical Bab el-Mandeb port.
The Houthi proposal came as a surprise to analysts , despite it not been the first ceasefire in the years-long conflict.
The slides in oil prices was also caused by the claims made by Iranian President Hassan Rouhani on Friday that the United States offered to remove all sanctions on Iran in exchange for negotiations.
President Donald Trump later said in a tweet that he responded “of course, NO!” to Iran who he said wanted him to lift the sanctions in order to meet.
The State Department on its part called the report “baseless,” and said that the US is committed to zero oil exports from the Iranian regime.
Dipo Olowookere