Oil prices drop as Middle East tension ease

Oil prices extended declines on Wednesday as Middle East tension eased after Saudi Arabia ended a military campaign in Yemen, while industry data showed that a larger-than-expected build in U.S. oil inventories. Saudi Arabia announced on Tuesday it was ending a month-long campaign of air strikes against the Houthi rebels who seized large areas of Yemen, easing geopolitical tension in the key oil producing region. Oil prices have risen nearly $10 a barrel so far this month, on tension in the Middle East and concerns over slowing output growth in the United States. "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 (VITOLV.UL), said.

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