Oil prices rose in Asia Monday after crude kingpin producer Saudi
Arabia cut diplomatic ties with Iran following a row over the Saudi
execution of a Shiite cleric.
Saudi Arabia announced the decision Sunday, a day after protesters
ransacked its embassy in Tehran over the execution of the cleric, Sheikh
Nimr al-Nimr.
Saudi Foreign Minister Adel al-Jubeir said Iranian diplomats had 48
hours to leave. Iran's supreme leader warned Saudi Arabia it would face
"quick consequences" for the execution.
Fearing further upheaval in the already volatile Middle East, the
United States has urged regional leaders to try to ease tensions.
At around 0610 GMT, US benchmark West Texas Intermediate for delivery
in February was up 77 cents, or 2.08 percent, at US$37.81. Brent crude
for February was trading 91 cents, or 2.44 percent, higher at US$38.19.
"Oil started the new year on the mend, as Asian markets reacted to
fears that geopolitical tensions in the Middle East may threaten the
supply of oil," said Bernard Aw, market strategist at IG Markets in
Singapore.
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