Oil prices spike after Saudi attack disrupts global supply
- 5 years ago
A drone attack on critical Saudi oil facilities over the weekend could mean up to HALF of Saudi Arabia's oil production could be disrupted.
And following the attack, many countries have been bracing for spiking global oil prices.... while the U.S. is going to tap reserves to keep the market supplied.
Kim Mok-yeon starts us off.
Oil prices soared nearly 20 percent when markets reopened after Saturday's drone attacks on Saudi Arabia's main oil processing plants, which had supplied some 5 percent of the world's oil.
As markets opened Monday in Asia, the Singapore Exchange saw Brent crude trading at more than 71 U.S. dollars per barrel on the oil futures markets, up 19 percent from Friday's close.
On the New York Mercantile Exchange, West Texas Intermediate crude opened at 63 dollars, also rising more than 15 percent from the previous close.
The surge came as Saudi Arabia's state-run oil company, Saudi Aramco, temporarily closed facilities accounting for more than half its production.
Saudi Arabia's energy minister Abdulaziz bin Salman says the strikes will cut the kingdom's oil output by 5-point-7 million barrels a day.
Many countries are bracing for impact, especially South Korea, Japan and China who all import large quantities of oil from Saudi Arabia.
In the U.S., President Trump said he has authorized the release of oil from the Strategic Petroleum Reserve.
On Twitter Sunday, Trump said Washington is prepared to tap into its emergency fuel reserves to stabilize global supplies, but added that the amount is yet to be determined.
Right after the attacks on Saturday, the U.S. blamed Iran for the drone strikes, but Iran denied any involvement, calling the accusation "blind and futile."
Iraq, another country accused of involvement in the attacks by the media, also denied any link, stressing that it is constitutionally committed to preventing any use of its soil for attacks on its neighbors.
Kim Mok-yeon, Arirang news.
And following the attack, many countries have been bracing for spiking global oil prices.... while the U.S. is going to tap reserves to keep the market supplied.
Kim Mok-yeon starts us off.
Oil prices soared nearly 20 percent when markets reopened after Saturday's drone attacks on Saudi Arabia's main oil processing plants, which had supplied some 5 percent of the world's oil.
As markets opened Monday in Asia, the Singapore Exchange saw Brent crude trading at more than 71 U.S. dollars per barrel on the oil futures markets, up 19 percent from Friday's close.
On the New York Mercantile Exchange, West Texas Intermediate crude opened at 63 dollars, also rising more than 15 percent from the previous close.
The surge came as Saudi Arabia's state-run oil company, Saudi Aramco, temporarily closed facilities accounting for more than half its production.
Saudi Arabia's energy minister Abdulaziz bin Salman says the strikes will cut the kingdom's oil output by 5-point-7 million barrels a day.
Many countries are bracing for impact, especially South Korea, Japan and China who all import large quantities of oil from Saudi Arabia.
In the U.S., President Trump said he has authorized the release of oil from the Strategic Petroleum Reserve.
On Twitter Sunday, Trump said Washington is prepared to tap into its emergency fuel reserves to stabilize global supplies, but added that the amount is yet to be determined.
Right after the attacks on Saturday, the U.S. blamed Iran for the drone strikes, but Iran denied any involvement, calling the accusation "blind and futile."
Iraq, another country accused of involvement in the attacks by the media, also denied any link, stressing that it is constitutionally committed to preventing any use of its soil for attacks on its neighbors.
Kim Mok-yeon, Arirang news.