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Yemen "Gulf Intervention" Premium Erased, WTI Tumbles Back Below $49

Well that was a quick geopolitical event. On the heels of what was set to be Crude's best week since July 2013, Stratfor clarifying little risk of disruption to crude supplies, Goldman confirming neglible impact from Yemen and more to Iran, and reports from Saudi Arabia that "this [Yemen] operation will not go on for long, I think it will be days," WTI crude has tumbled back to the $48 handle and erased all the "gulf intervention" premium - refocusing on domestic storage concerns.

 

 

As Reuters reports,

The Arab military campaign against Yemen's Houthi militia is likely to last days rather than weeks, Yemeni Foreign Minister Riyadh Yaseen told Saudi-owned al-Arabiya television on Friday.

 

In answer to a question about whether he thought the Saudi-led operation, which began on Thursday, would last days or weeks or more, Yaseen replied: "I expect that this operation will not go on for long, I think it will be days."

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