Oil Facility Attack ! Crude Price Surge

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Oil prices surged on Monday, with Brent crude jumping 19% to $71.95 a barrel, after attacks on Saudi Arabian oil facilities on Saturday, reports BBC.

Four months high

Oil prices hit their highest in four months after two attacks on Saudi Arabian facilities on Saturday knocked out more than 5% of global supply.

At the start of trading, Brent crude jumped 19% to $71.95 a barrel, while the other major benchmark, West Texas Intermediate, rose 15% to $63.34.

Slight ease on price

Prices eased back slightly after US President Donald Trump authorised the release of US reserves.

It could take weeks before the Saudi facilities are fully back on line.

Reduction in production

The Saudis have not gone into any detail about the attacks, barring saying there were no casualties, but have given a few more indications about oil production.

The kingdom is the world’s biggest oil exporter, shipping more than seven million barrels daily.

Plans to tap into reserves

Saudi Arabia is expected to tap into reserves so that exports can continue as normal this week.

Energy Minister said some of the fall in production would be made up by tapping huge storage facilities.

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Source: BBC

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