Attacks on two sites at the heart of Saudi Arabia’s oil industry shut down more than 5% of global supply, sent oil prices as much as 20% higher.
Yemen’s Houthi group, which is battling a Saudi-led coalition in Yemen, claimed responsibility for the attacks on Saturday on sites run by state-owned Saudi Aramco.
- The attacks, which knocked out about 5.7 million barrels per day (bpd) of Saudi output, targeted sites in Abqaiq and Khurais, in eastern Saudi Arabia.
- Abqaiq processes crude from the giant Ghawar oil field for export to terminals in the Gulf and Red Sea.
- Oil prices soared as much as 20% on Monday, with Brent crude posting its biggest intra-day percentage gain since the Gulf War in 1991.
- Analysts said benchmark Brent, now trading at around $66 a barrel, could hit $100 if Riyadh failed to quickly bring back supply.
- The Organization of the Petroleum Exporting Countries is assessing the impact but says it is too early for members to take any action on raising production or holding a meeting, the UAE energy minister and other sources said.
- Saudi Aramco’s full return to normal oil output volumes “may take months”, two sources said on Monday.
- Saudi Arabia usually ships more than 7 million bpd of oil to global destinations and has for years served as the market’s supplier of last resort.
- The attack, which knocked out more than half of Saudi Arabia’s output, constrained its ability to use more than 2 million bpd of spare oil capacity held for emergencies.
- Saudi Aramco has been seeking to prepare for a share sale that would make it the world’s largest listed company.
