Saudi Arabia announced on Tuesday it was ending a month-long campaign of air strikes in Yemen

Oil prices fall as Saudi ends military campaign in Yemen

RIYADH, April 22, 2015 – Oil prices extended declines on Wednesday, after Saudi Arabia ended its month-long military campaign in Yemen.

The major oil producer announced Tuesday that it was concluding air strikes against the Houthi rebels who had seized large areas of its neighbouring country.

Oil prices have climbed by close to $10 per barrel so far in April, amid tension in the Middle East region and slowing output growth in the US. Prices could now deteriorate once more, but are unlikely to slump to new depths in 2015, according to leading commodity traders, who cited increasing global demand.

“We will probably see one more dip in the second quarter but prices probably won’t go below this year’s lows,” Ian Taylor, head of the world’s largest oil trader Vitol, was reported as saying.

The Intercontinental Exchange Brent future for June delivery, LCOc1, had fallen by $0.50 to $61.58 per barrel at 09.45 GMT, after closing $1.27 lower on Tuesday. WTI for June delivery, CLc1, was down $0.70 at 55.91 at 09.45 GMT. The contract for May delivery, which expired on Tuesday, closed down $1.12.

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