Crude moves up as fighting resumes in Yemen

Crude oil shrugged of slump sharply today, over rising tensions in Middle East.

Key updates -

• Saudi Arabia resumed bombing today, as five day truce ended and ignoring the call from UN to extend the truce to ensure delivery of humanitarian aid.

• Iran raised the tension in Persian Gulf, as Iranian Navy fired across the bow of a commercial ship near the Straits of Hormuz. The ship was not harm, however Iran is surely sending some message over its hold in Strait of Hormuz. Iran and Saudi backed fighters are fighting in Yemen over the control of another key shipping point Bab el Mandeb.

• US President Barrack Obama, met with Arab leaders in Washington and faced tough resistance from gulf leaders over Iran's nuclear deal. Gulf leaders demanded additional security promises from US in case Iran attacks one of the gulf members. US remain committed towards supporting the allies, however resisted the calls for further security extension.

WTI crude oil $60.6/barrel and Brent is at $66.4/barrel. Prices have cooled off a little after strong showing as dollar rose from four month low. WTI traded as high as $61.7, while Brent traded $67.9. Further rise remains on card, should dollar weaken considerably.