Officials in Saudi Arabia indicated it would return to normal levels of oil production by Monday, as they sought to reassure world markets after a drone attack Saturday on one of the kingdom’s most productive oil facilities prompted it to cut its crude production in half.
The attack led to speculation that the U.S. and Europe could release emergency stockpiles. On Saturday, the International Energy Agency, a Paris-based group representing top energy-consuming nations, said it was in contact with Saudi authorities and major producer and consumer nations, and “for now, markets are well supplied with ample commercial stocks,” the group said. “The IEA is monitoring the situation in Saudi Arabia closely.”
The attack by Yemeni rebels, called Houthis, led to the shutdown of five million barrels a day of Saudi oil production. The facility attacked by drones early Saturday will resume production by Monday, kingdom officials said.
Markets haven’t seen a shutdown on the scale of Saudi’s five million barrels since Iraq invaded Kuwait in 1990. That conflict, which led to an international military intervention, saw the loss of four million barrels a day.
A sustained Saudi outage of several million daily barrels would likely prod U.S. and Europe officials to release emergency stockpiles, according to officials with the Organization of the Petroleum Exporting Countries and analysts.
While the group of industrialized nations would normally coordinate a release, the U.S. would be expected to turn to its own Strategic Petroleum Reserve to help global markets avoid price spikes.
The drone attacks Saturday hit Hijra Khurais, one of Saudi Arabia’s largest oil fields producing about 1.5 million barrels a day, and Abqaiq, the world’s biggest crude stabilization facility, which processes seven million barrels of Saudi oil a day, or about 8% of the world’s total output.
(Excerpt) Read more at wsj.com ...
Thereby DASHING THE HOPES of the DemonRATS that the drone strike on Saudi Arabia would lead to a WORLD WIDE FINANCIAL PANIC and a setback for Trump's great economy.....
The attack led to speculation that the U.S. and Europe could release emergency stockpiles. On Saturday, the International Energy Agency, a Paris-based group representing top energy-consuming nations, said it was in contact with Saudi authorities and major producer and consumer nations, and “for now, markets are well supplied with ample commercial stocks,” the group said. “The IEA is monitoring the situation in Saudi Arabia closely.”
The attack by Yemeni rebels, called Houthis, led to the shutdown of five million barrels a day of Saudi oil production. The facility attacked by drones early Saturday will resume production by Monday, kingdom officials said.
Markets haven’t seen a shutdown on the scale of Saudi’s five million barrels since Iraq invaded Kuwait in 1990. That conflict, which led to an international military intervention, saw the loss of four million barrels a day.
A sustained Saudi outage of several million daily barrels would likely prod U.S. and Europe officials to release emergency stockpiles, according to officials with the Organization of the Petroleum Exporting Countries and analysts.
While the group of industrialized nations would normally coordinate a release, the U.S. would be expected to turn to its own Strategic Petroleum Reserve to help global markets avoid price spikes.
The drone attacks Saturday hit Hijra Khurais, one of Saudi Arabia’s largest oil fields producing about 1.5 million barrels a day, and Abqaiq, the world’s biggest crude stabilization facility, which processes seven million barrels of Saudi oil a day, or about 8% of the world’s total output.
(Excerpt) Read more at wsj.com ...
Thereby DASHING THE HOPES of the DemonRATS that the drone strike on Saudi Arabia would lead to a WORLD WIDE FINANCIAL PANIC and a setback for Trump's great economy.....
