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Oil has risen more than 10% on news from Saudi Arabia

UNITED STATES, WASHINGTON (OBSERVATORY) — Oil prices of reference grades are rising on Monday, September 16, on fears of significant supply disruptions due to more than halved production in Saudi Arabia.

November futures for Brent on the London ICE Futures exchange by 18:05 UTC went up by 7.13 dollars (11.84%) – up to 67.35 dollars per barrel. The October futures price for the WTI futures on the New York Mercantile Exchange (NYMEX) increased by $ 6.27 (11.43%) to $ 61.12 per barrel.

Saudi Arabia’s oil facilities were reportedly attacked by drones on Saturday, September 14th . The largest in the country complex for the preparation of oil Abigail and the large oil field Khurais were attacked. As a result, oil production was suspended in the amount of 5.7 million barrels per day (b / c), that is, about half of the total volume produced in the country, or almost 6% of world oil production.

According to the International Energy Agency (IEA), these are the most serious supply disruptions in history, even exceeding the damage from the Islamic revolution in Iran in 1978-1979 and the oil embargo after the Arab-Israeli war of 1973-1974.

Hussite Yemeni rebels claimed responsibility for the attack on Saudi targets, but US Secretary of State Mike Pompeo blamed Iran for this, noting that there was no evidence that the attacks came from Yemen. Tehran denies the allegations.

The official representative of the Arab coalition of Turki al-Maliki said that the drones with which the attacks were carried out were of Iranian origin. He also told reporters in Riyadh that these attacks were not carried out from Yemen.

Saudi Arabian State Oil Company Saudi Arabian Oil Co. (Saudi Aramco), which planned to restore about a third of production by Monday evening, is no longer as optimistic as it was initially, Bloomberg reports citing an informed source.


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