Oil Prices Soar After Attacks on Saudi Oil Facilities
Oil prices ended nearly 15% higher on Monday following drone attacks on Saudi Arabia oil facilities. Iran is alleged to be responsible for the attacks according to the United States.
The rise came after two attacks on Saudi Arabian facilities on Saturday knocked out about 5% of global supply.
The facilities were attacked at 04:00 (01:00 GMT) on Saturday as spheroids used to store oil were hit by missiles from drones. In a statement released by Saudi Arabia, it was announced that the fires had been brought under control within hours, and no one had been killed or injured.
However the fires led to the interruption of an estimated 5.7 million barrels in global oil supplies, according to the statement. Prices fell back after President Donald Trump vowed to release US reserves.
The strike, which the US blames on Iran, has sparked fears of increased risk to energy supplies in the region.
The drone attacks on plants in the heartland of Saudi Arabia’s oil industry hit the world’s biggest petroleum-processing facility as well as a nearby oil field, both of which are operated by energy giant Aramco.
Together they account for about 50% of Saudi Arabia’s oil output, or 5% of daily global oil production. It could take weeks before the facilities are fully back on line.
Saudi Arabia is the world’s biggest oil exporter, shipping more than seven million barrels daily. Saudi stocks stood at 188 million barrels in June, according to official data.