World: Oil Prices Jump Most on Record After Saudi Arabia Strike - PressFrom - US
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WorldOil Prices Jump Most on Record After Saudi Arabia Strike

13:40  16 september  2019
13:40  16 september  2019 Source:   msn.com

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Oil prices climbed on Tuesday after Saudi Arabia reported "armed drones" attacked two pumping US oil prices rose 1.4% even though Saudi Aramco told CNN that the attack caused "no damage to Normally such threats to the Middle East's oil supplies would have a more pronounced impact to oil

More here: Oil Jumps Most on Record After Attack Cuts Saudi Arabian Supply. Saudi Arabia oil supply was attacked. There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the

Oil posted its biggest ever intraday jump, briefly surging above $71 a barrel after a strike on a Saudi Arabian oil facility removed about 5% of global supplies and raised the specter of more destabilization in the region.

In an extraordinary start to trading on Monday, London’s Brent futures leaped almost $12 in the seconds after the open, the most in dollar terms since their launch in 1988. Prices have since pulled back about half of that initial gain of almost 20%, but are still heading for the biggest advance in almost three years.

For oil markets, it’s the single worst sudden disruption ever, and while Saudi Arabia may be able to return some supply within days, the attacks highlight the vulnerability of the world’s most important exporter. They also revive political risk in prices, with the heightened danger of conflict in a region that holds almost half of global crude reserves.

Damage from Iran-linked drone attack on Saudi oil facility captured in satellite images

Damage from Iran-linked drone attack on Saudi oil facility captured in satellite images Saudi oil sites attacked on Saturday -- in a drone assault linked to Iran -- were seen to have sustained damage after satellite images released Sunday captured char marks and smoke billowing from the world’s largest oil processing facility. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); The weekend attack ignited huge fires at Saudi Aramco's Abqaiq oil processing facility and interrupted about 5.7 million barrels of crude oil production -- over 5 percent of the world’s daily supply.

Global oil prices surged the most on record after a drone strike on a Saudi Arabian oil facility removed about 5% of global supplies. In one of the most dramatic oil market opens, Brent futures jumped almost a barrel in the seconds after trading started on Monday, the biggest advance in

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 .95 a barrel, while the other major benchmark, West Texas Intermediate, rose 15% to .34.

“We have never seen a supply disruption and price response like this in the oil market,” said Saul Kavonic, an energy analyst at Credit Suisse Group AG. “Political-risk premiums are now back on the oil-market agenda.”

In other developments:Saudi Arabia’s Reliable Oil Supplier Brand Frayed After AttackSaudi Oil Fix In Focus After 19% Jump on Record Supply LossBarkindo Says Premature to Contemplate OPEC+ Output IncreaseMike Pompeo Just Ended Any Hopes for Iranian Oil: Julian LeeThe Attack on Saudi Arabia Demands a United Response: Editorial

The dramatic move in oil reverberated around financial markets. Haven assets including gold and Treasury futures surged on concern over the geopolitical fallout from the attacks. Currencies of commodity-linked nations including the Norwegian krone and the Canadian dollar also advanced. U.S. gasoline futures jumped almost 13% before paring their increase to around 8%.

Trump authorizes release of U.S. oil reserves if needed because of Saudi attacks

Trump authorizes release of U.S. oil reserves if needed because of Saudi attacks Trump authorizes release of U.S. oil reserves if needed because of Saudi attacks

Global oil prices surged the most on record after a drone strike on a Saudi Arabian oil facility removed about 5% of global supplies.

Oil analysts expect prices to jump at least to a barrel Monday after a strike on a key facility cut Saudi Arabia ’s production by half, pulling some 5 Geopolitics wasn’t much of a concern in traders’ minds, but that’s all changed now. “There is almost no geopolitical risk priced into oil markets that are

State energy producer Saudi Aramco lost about 5.7 million barrels a day of output on Saturday after 10 unmanned aerial vehicles struck the world’s biggest crude-processing facility in Abqaiq and the kingdom’s second-largest oil field in Khurais.

The disruption surpasses the loss of Kuwaiti and Iraqi petroleum output in August 1990, when Saddam Hussein invaded his neighbor. It also exceeds the loss of Iranian oil production in 1979 during the Islamic Revolution, according to the International Energy Agency.

Oil Prices Jump Most on Record After Saudi Arabia Strike© Bloomberg Oil Disruptions

“The vulnerability of Saudi infrastructure to attacks, historically seen as a stable source of crude to the market, is a new paradigm the market will need to deal with,” said Virendra Chauhan, a Singapore-based analyst at industry consultants Energy Aspects Ltd. “At present, it is not known how long crude will be offline for.”

Oil output will be fully back online by end of September, Aramco IPO on track, Saudis say

Oil output will be fully back online by end of September, Aramco IPO on track, Saudis say Saudi oil production will be fully back online by end of September, the kingdom’s Energy Minister Prince Abdulaziz bin Salman told media during a press conference in Jeddah on Tuesday, sending oil prices down by nearly 6% just a day after their biggest jump in history. The world’s largest crude oil processing facility and heartbeat of Saudi Arabia’s energy industry was targeted in drone attacks early Saturday morning that knocked out half of the OPEC kingpin’s production capacity.

Oil prices jumped on global markets Sunday night after a wave of weekend drone attacks instantly erased half of Saudi Arabia 's oil production. Most oil companies and nations favor world oil prices in the to range, which allows a healthy profit without rattling the economy or sparking a rush

Saudi Arabia is said to be shutting down around half of its oil output, the Wall Street Journal reports. Officials have not yet commented on who they think is behind the attacks. The Saudi Air Force has been pummelling targets in Yemen for years. Now the Houthis have a capable, if much more limited

Saudi Arabia can restart a significant volume of the halted oil production within days, but needs weeks to restore full output capacity, people familiar with the matter said. The kingdom -- or its customers -- may use stockpiles to keep supplies flowing in the short term. Aramco could consider declaring itself unable to fulfill contracts on some international shipments -- known as force majeure -- if the resumption of full capacity at Abqaiq takes weeks.

That would rattle oil markets further and cast a shadow on Aramco’s preparations for what could be the world’s biggest initial public offering. It’s also set to escalate a showdown pitting Saudi Arabia and the U.S. against Iran, which backs proxy groups in Yemen, Syria and Lebanon. Iran-backed Houthi rebels in Yemen claimed credit for the attack, but U.S. President Donald Trump and Secretary of State Mike Pompeo have already pointed the finger directly at Iran.

Trump, who said the U.S. is “locked and loaded depending on verification” that Iran staged the attack, earlier authorized the release of oil from the nation’s emergency reserves. The IEA, which helps coordinate industrialized countries’ emergency fuel stockpiles, said it was monitoring the situation.

Pompeo to travel to Saudi Arabia after attack on oil facilities

Pompeo to travel to Saudi Arabia after attack on oil facilities Secretary of State Mike Pompeo will travel to Saudi Arabia on Tuesday after an attack on two of the kingdom's oil facilities. © Getty Images Pompeo to travel to Saudi Arabia after attack on oil facilities Pompeo will arrive in Jeddah on Wednesday to meet with Saudi Crown Prince Mohammed bin Salman to discuss the attack and coordinate efforts to combat "Iranian aggression in the region," the State Department said Tuesday. The secretary will then travel to Abu Dhabi to meet Sheikh Mohammed bin Zayed al-Nahyan, the crown prince of the United Arab Emirates, to discuss regional and bilateral issues.

(Bloomberg) -- Global oil prices surged the most on record after a strike on a Saudi Arabian oil facility removed about 5% of global supplies, an attack the U.S. has blamed on Iran.In an extraordinary start to trading, Brent futures jumped almost a barrel in the seconds after the open on Monday

Oil prices jumped 15% after a coordinated drone attack hit the heart of Saudi Arabia 's oil industry on Saturday, forcing the kingdom to cut its oil output in Drone strikes attacked an oil processing facility at Abqaiq and the nearby Khurais oil field on Saturday, knocking out 5.7 million barrels of daily crude

“No matter whether it takes Saudi Arabia five days or a lot longer to get oil back into production, there is but one rational takeaway from this weekend’s drone attacks on the kingdom’s infrastructure -- that infrastructure is highly vulnerable to attack, and the market has been persistently mispricing oil,” Ed Morse, Citigroup Inc.’s global head of commodities research, wrote in a note.

Brent jumped more than 19% to $71.95 a barrel on ICE Futures Europe, its biggest gain in percentage terms since 1991. In the ensuing hours, it pared that advance to trade up 9.5% at $65.92 a barrel as of 10:25 a.m. in London. The global benchmark crude could rise above $75 a barrel if the outage at Abqaiq lasts more than six weeks, Goldman Sachs Group Inc. said.

On the New York Mercantile Exchange, West Texas Intermediate futures were frozen for about two minutes after the scale of the move delayed the market open. When it finally started trading, WTI jumped more than 15% to $63.34 a barrel, the most since 2008. It was at $59.73 as of 10:26 a.m. London time.

Oil Prices Jump Most on Record After Saudi Arabia Strike© Bloomberg Crude futures surge after a drone strike on a Saudi Aramco oil facility

The attacks “set the stage for a Monday-morning mini-massacre of any market participants holding short positions or bearish expectations,” said John Driscoll, chief strategist at JTD Energy Services Ltd. in Singapore. The “price move was exacerbated by the unprecedented magnitude of the outage on the world’s key supplier and the potential for escalation of geopolitical skirmishes involving the U.S., Saudi and Iran.”

The drama wasn’t limited to flat prices. The spread between Brent and WTI widened as much as 37%, showing that the oil spike will affect global prices more than those in the U.S., where shale output and ample supplies provide more of a buffer.

Brent’s six-month backwardation jumped to the highest level since September 2013 as the outage raised concerns about obtaining near-term supplies. And the call-put skew flipped into positive territory for the first time since 2018, indicating that options traders are willing to pay more to place a bet on prices rising rather than falling.

--With assistance from Nayla Razzouk, Javier Blas, Anthony DiPaola, David Marino, James Thornhill, Michael Roschnotti, Tina Davis, Stephen Stapczynski, Sharon Cho, Ann Koh, Heesu Lee, Sarah Chen, Ramsey Al-Rikabi and Grant Smith.

To contact the reporters on this story: Serene Cheong in Singapore at [email protected];Dan Murtaugh in Singapore at [email protected]

Read More

Saudi says it will respond appropriately if probe confirms Iran's role in attacks .
Saudi Arabia will take appropriate steps to respond to an attack on its oil facilities if, as expected, a Saudi investigation confirms that Iran is responsible, a senior official said on Saturday. © REUTERS/Simon Dawson Saudi Arabia's Foreign Minister Adel al-Jubeir speaks at a briefing with reporters in London, Britain June 20, 2019. REUTERS/Simon Dawson Minister of State for Foreign Affairs Adel al-Jubeir said the probe would prove that the Sept. 14 strikes came from the north and that Iran bore responsibility, a charge Tehran denies.

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