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The strike on the heartland of Saudi Arabia's oil industry, including damage to the world's biggest petroleum-processing facility, has driven oil prices to their highest level in nearly four months. Why is this so disruptive for global oil supplies? The attack on Saudi oil facilities on Saturday not only knocked out over half of the country's production, it also removed almost all the spare capacity available to compensate for any major disruption in oil supplies worldwide.
Global energy prices spiked on Monday after a weekend attack on key oil facilities in Saudi Arabia caused the worst disruption to world supplies on record, an assault for which President Donald Trump warned that the U.S. was "locked and loaded" to respond. U.S. officials offered satellite images of the damage at the heart of the kingdom's crucial Abqaiq oil processing plant and a key oil field, alleging the pattern of destruction suggested the attack on Saturday came from either Iraq or Iran — rather than Yemen, as claimed by Iranian-backed Houthi rebels there.
Oil prices slipped and stocks were treading water in Asian trading hours on Tuesday morning, as investors continued to weigh up the implications of a major attack on Saudi Arabia’s oil infrastructure at the weekend. Investors said that the near-term direction of crude prices would be determined the extent of repairs needed at the Abqaiq facility, and the reactions of Washington and Riyadh.
Oil fell more than 1% on Tuesday as the market hung on tenterhooks following attacks on Saudi Arabian crude facilities that cut the kingdom's production in half and sent prices soaring by the most in decades. The attack heightened uncertainty in a market that had become relatively subdued in recent months due to slowing growth as the U.S.-China trade war rages and now faces the loss of crude from Saudi Arabia, usually the supplier of last resort. Brent crude was down 77 cents, or 1.1%, at $68.25 a barrel by 0051, while West Texas Intermediate was down 82 cents, or 1.3%, at $62.08 a barrel.
Oil shed some of its massive gains on Tuesday as the United States flagged the possible release of crude reserves, but the threat of military action over the attacks on Saudi oil facilities kept prices elevated and stocks under pressure. Investors otherwise broadly remained on the sidelines ahead of an expected interest rate cut from the U.S. Federal Reserve on Wednesday and the next round of U.S.-China trade talks on Thursday. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.6%.
Two Saudi Aramco crude oil facilities were attacked by Iran-backed Houthi rebels using drones. At 10:23 AM, Brent crude oil was trading up 11.2% at $67.
Oil prices spiked on Monday, following Saturday’s attacks on Saudi oil infrastructure, but analysts don’t have a clear picture yet about how long and how severe the supply outage will be
Tullow Oil's (TUWOY) Joe-1 oil discovery follows its massive and significant oil discovery in August at its Jethro-1 exploration well in Guyana.
Amid a flurry of Twitter posts on Monday morning, U.S. President Donald Trump turned to the weekend attack on Saudi Arabia’s oil facilities and assured his audience the United States had become such a big producer it no longer needed oil from the Middle East https://twitter.com/realDonaldTrump/status/1173560246863876096. U.S. government data tells a different story: The technology-driven U.S. drilling boom that started more than a decade ago has made the United States a massive producer, but imports of crude oil and petroleum products from the Gulf region last year still flowed in abundantly https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTTIMUSPG1&f=M. Iran has rejected U.S. charges it was to blame for the attacks, which damaged the world's biggest crude-processing plant in Saudi Arabia and triggered the largest jump in crude prices in decades.
The United States readied its response Monday to the "unprecedented" attack on Saudi oil facilities as President Donald Trump said Iran was likely to blame, fanning new fears of conflict in the Gulf region. Trump said he was ready to help key ally Saudi Arabia after the weekend drone attacks, which triggered a record leap in global oil prices, but would await a "definitive" determination on who was responsible. "Certainly, it would look to most like it was Iran," the president added.
U.S. shale companies aren’t planning to fill the void in global crude supplies left by an attack on Saudi Arabia’s top oil facilities. Instead, producers hope to profit from price increases caused by the disruption.
Energy Aspects’ chief oil analyst Amrita Sen doesn’t expected Saudi oil production to fully recover for weeks or even months following the attacks on Saturday
Southwest Airlines and American Airlines shares were down Monday morning after an attack on Saudi oil infrastructure over the weekend.
Bahrain's national oil and gas authority said on Monday that facilities at Bapco refinery were continuing without impact on the provision of oil derivatives in the local market, state news agency BNA reported. Sources told Reuters earlier on Monday that Saudi Arabia has shut down its crude oil pipeline to Bahrain after attacks on Saudi oil facilities. "Operations to supply Bapco refinery with crude oil are underway in accordance with the business continuity plan," the authority said.
NEW YORK/SINGAPORE (Reuters) - The oil markets were in turmoil on Monday after the weekend's attack on Saudi facilities, as refiners in top consumer Asia looked for alternative supplies, U.S. crude producers ramped up efforts to export crude and Saudi Arabia tried to secure refined products. While most countries have ample storage to meet immediate needs, companies are already planning for shipments for weeks and months into the future to make up for a shortfall in light crude and refined products, market participants said. The lost Saudi crude oil output represents about 5% of global crude supply.
An intensifying Middle East conflict is threatening to throw the world’s energy market into disarray after weekend drone attacks destroyed parts of Saudi Aramco’s Abqaiq plant — one of the world’s largest processors of oil — and a separate nearby oil field. On Saturday, the drone attacks, directed at Saudi Arabian oil facilities that account for nearly 10 million barrels of crude-oil production, resulted in massive plumes of black smoke emanating from the oil field, and a shutdown that could lead to about 50% of its production being at least temporarily thrown offline. Prominent crude-oil strategist Phil Flynn at Price Futures Group told MarketWatch on Sunday that the drone strike was a “big deal” that could result in a major spike in crude-oil prices, because of the potential disruption to global supplies.
The three major U.S. stock market indexes were modestly lower after oil prices jumped following Saturday’s attack on Saudi Arabian oil infrastructure.
"We are yet a little premature in making any ... actions about whether or not the (U.S. Strategic Petroleum Reserve) is actually going to be needed, until we get a handle on the length of time that this facility is going to be down," Perry told CNBC in an interview from Vienna. After Saturday's attacks on the heart of Saudi Arabia's oil processing that shut 5% of global oil supply the kingdom has said it could bring back about a third of the shut supply on Monday. U.S. President Donald Trump has said the U.S. administration stood ready to tap the reserve if needed.
Stocks of smaller and more-leveraged energy companies are among the biggest winners Monday from the sharp rise in crude-oil prices following the disruption in Saudi Arabian energy output. Exchange-traded funds that track the sector are up, as well.
On Sunday, President Trump took a significant step to minimize the upside in oil. He tweeted that the SPR will be used to limit oil prices' upside.
The strike on the heartland of Saudi Arabia's oil industry, including damage to the world's biggest petroleum-processing facility, has driven oil prices to their highest level in nearly four months. The attack on Saudi oil facilities on Saturday not only knocked out over half of the country's production, it also removed almost all the spare capacity available to compensate for any major disruption in oil supplies worldwide.