Tensions in the Middle East continue to simmer after Saudi Arabia's Crown Prince Mohammad bin Salman in an interview, broadcast on CBS channel on Sunday, warned of oil prices spiking to "unimaginably high numbers" if the world does not come together to deter Iran.
"If the world does not take strong and firm action to deter Iran, we will see further escalations that will threaten world interests. Oil supplies will be disrupted and oil prices will jump to unimaginably high numbers that we haven't seen in our lifetimes," he said.
However, he further said that he prefers a political solution over a military one.
A day before the interview was broadcasted, Yemen's Houthi movement said it had carried out a major attack near the border with the southern Saudi region of Najran and captured many troops and vehicles. The same group had also earlier taken responsibility for the 14 September drone attacks on Saudi oil facilities.
Saudi Arabia restored its production capacity to 1.3 million barrels per day last week, according to a Reuters report citing sources. The kingdom has been maintaining its export orders following the attacks.
Further, international oil prices rose on Monday after China's factories showed an unexpected increase in its factory activity in the month of September. Brent crude futures jumped by 9 cents to $62 a barrel as China's PMI showed signs of ramped up production and an increase in new orders, easing oil demand concerns in the world's second biggest consumer.
Geopolitical tensions and the possibility of a revival in fuel demand has put oil prices back on track for gains.
Retail prices of fuel in India also jumped. On Monday, oil retailers hiked Petrol prices per litre by 7 to 8 paise to Rs 74.42 in Delhi, Rs 80.08 in Mumbai, Rs 77.36 in Chennai and Rs 77.10 in Kolkata.
Diesel prices per litre were up by 9 to 10 paise to Rs 67.33 in Delhi, Rs 70.64 in Mumbai, Rs 71.19 in Chennai and Rs 69.75 in Kolkata.