Attack on Saudi Arabian oil facility pushes prices
A strike by 10 unmanned aerial vehicles on Saudi Aramco (which is regarded as the world’s biggest crude-processing facility in Abqaiq) removed about 5% of global oil supplies. This strike on the state energy producer is the single worst such disruption ever and has rattled global oil prices. Brent futures touched almost US$ 12 a barrel, the highest advance in dollar-terms since they were launched in 1988.
“No matter whether it takes Saudi Arabia five days or a lot longer to get oil back into production, there is but one rational takeaway from this weekend’s drone attacks on the Kingdom’s infrastructure — that infrastructure is highly vulnerable to attack, and the market has been persistently mispricing oil,” Citigroup Inc.’s Ed Morse said.