The attack on two Saudi Arabian oil facilities led to the largest surge in oil prices since 1991. The attack also slashed 5 percent of the global crude oil supply.
Crude oil price spikes also occur after U.S. officials accused Iran of being behind the last weekend’s attack, followed by U.S. President Donald Trump’s statement that calls his country ready for retaliation for the attack .
The attack using drones a.k.a. the unmanned aircraft was happening on Saturday (14/9) early in the day. The oil refinery that is targeted belongs to Aramco and is located in Abqaif (7 million barrels per day) and Khurais (1.5 million barrels per day). The attack triggered a terrific fire and halted the Saudi oil supply half.
Saudi Arabia is not just the world’s largest oil exporter. Arabia has a unique role in the market as the only country that can increase or decrease its production to millions of barrels per day to keep the market steady.
U.S. officials who ask for unnamed say, there are 19 impact points in the attack and evidence suggests, the launch area is in the west-northwest of the target, not south or Yemen. Officials said, Saudi officials have seen signs that cruise missiles are used in the attack.
In a brief statement on Al-Masirah, the Yemeni television station under the group Houthi, the group spokesman, Yahia Sarie, said the group launched 10 drones after receiving intelligence support from within Saudi Arabia . He warned, the attack would deteriorate if the war continued.
The Coalition of the Gulf nations led by Saudi Arabia and supported by the United States launched a war in Yemen since 2015. Saudi Arabia wants to restore the internationally recognised government after the ruling Houthi usurped the capital city Sana’a in 2014. Arabia and the US often point Iran behind the Houthi group.
Reuters reported on Monday (16/9), the two anonymous sources of Saudi explained about the operation of the Saudi state-owned oil company Aramco. They said, in restoring the destroyed facilities, the country took months for Saudi oil production to return to normal.
In the morning trade yesterday, the Financial Times reported that Brent crude price had soared by 20 percent closer to 72 US dollars per barrel. While, during the day, the price surge was decreasing to 9.2 percent or 65.72 US dollars per barrel. The price surge of yesterday morning was the largest since the Iraqi invasion of 1991 to Kuwait that triggered the Gulf War.
The price briefly subsided after Trump announced that he would allow using U.S. emergency oil supplies. According to her the price is also triggered by producers around the world who say there are enough willingness of oil that is stored to redeem deficiencies due to attacks in Saudi.
“We are waiting to hear from the Saudi kingdom who they believe to be the party responsible for the attack, under what kind of severance we will respond to, ” said Trump in the official Canadian, it is a Sunday afternoon.