Oil prices soar after attack on saudi facilities
You're referring to the recent attack on Saudi Arabian oil facilities!
Yes, on September 14, 2019, a drone attack on two major oil facilities in Saudi Arabia, operated by Saudi Aramco, caused significant damage and disruptions to the country's oil production. The attack, which was claimed by Yemen's Houthi rebels, resulted in the shutdown of about 5.7 million barrels per day (bpd) of oil production, which is approximately 50% of Saudi Arabia's total output.
The impact on oil prices was immediate and significant. The price of Brent crude oil, the global benchmark, surged by around 15% to over $70 per barrel, while the price of West Texas Intermediate (WTI) crude oil, the US benchmark, jumped by around 12% to over $63 per barrel. The price increase was the largest one-day gain in over a decade.
The attack on Saudi Arabia's oil facilities has raised concerns about the stability of global oil supplies and the potential for further disruptions in the region. The incident has also highlighted the vulnerability of the global energy system to attacks on critical infrastructure.
In the aftermath of the attack, Saudi Arabia has taken steps to restore its oil production capacity, and the country has also increased its oil production to meet global demand. However, the incident has underscored the importance of maintaining a stable and secure global energy supply chain.
It's worth noting that the attack on Saudi Arabia's oil facilities has also had broader implications for the global economy, including:
- Increased inflation concerns: The surge in oil prices has raised concerns about inflation, particularly in countries with high oil import dependence.
- Impact on global trade: The attack has highlighted the vulnerability of global trade to disruptions in the energy sector, which could have far-reaching consequences for international trade and commerce.
- Geopolitical implications: The incident has raised tensions in the region and has implications for the global balance of power, particularly in the context of the ongoing conflict in Yemen.
Overall, the attack on Saudi Arabia's oil facilities has sent shockwaves through the global energy market, highlighting the importance of maintaining a stable and secure energy supply chain.