Crude oil prices climb on Monday following a weekend attack on a Saudi oil facility by Yemeni.
The oil market was jolted in mid-September 2019 following a drone attack on Saudi Arabia’s oil processing facilities. The attacks, which were claimed by Iranian-backed Houthi rebels from Yemen, caused widespread damage and panic across the industry.
The Abqaiq oil facility and Khurais oil field attack was one one of the most significant oil supply disruptions in history. It affected almost 5% of the global oil supply. The following day, the oil market reacted with a significant surge in oil prices. This is as traders scrambled to cover their positions.
The global benchmark for crude oil, Brent, surged by over 14%. Meanwhile the US benchmark, West Texas Intermediate (WTI), jumped 15%. As the world’s largest oil exporter, Saudi Arabia’s production cuts led to a sudden tightening of oil supplies, causing a ripple effect across the industry.
This blog post will examine the impact of the attack on the oil market, including the surge in oil prices and more.
Brent crude was up 64 cents, or about 1.1 percent, at $59.28 a barrel at 0255 GMT, and US crude was up 55 cents, or 1 percent, at $55.42 a barrel.
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