Oil Prices Surge Following Attack On Saudi Oil Industry

Saudi oil output is down 50%.

Oil prices have surged following the attack on the Saudi oil industry over the weekend.

After drones hit the Abqaiq oil processing facility, in addition to the Khurais oil field, Saudi Arabia’s oil output dropped by 5.7 million barrels.

That drop equals half of Saudi Arabia’s oil output.

The attacks caused a surge in the price of oil, with Brent Crude spiking by the largest amount in history, up 19.5% in the intraday. The rise was since pared back to about 10%.

The Canadian Crude Index was up just under 10% as of this being written.

Prices dropped further, though still remaining high, when US President Donald Trump said he would be deploying America’s strategic oil reserves.

“Based on the attack on Saudi Arabia, which may have an impact on oil prices, I have authorized the release of oil from the Strategic Petroleum Reserve, if needed, in a to-be-determined amount….”

“….sufficient to keep the markets well-supplied. I have also informed all appropriate agencies to expedite approvals of the oil pipelines currently in the permitting process in Texas and various other States”

Houthi rebels in Yemen have stated that they are responsible for the attack. Meanwhile, the US is blaming Iran.

Continuing instability and the rising threat of war in the middle east could cause long-term spikes in oil prices, extending beyond the current supply disruption.

Spencer Fernando

Photo – Twitter

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Scott
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Scott

Would it not be a good time to start exporting our oil and gas?

NancyW
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NancyW

Maybe this will help eastern Canada think more wisely.
Vote Conservative, lets unite Canada and get ahead, we could be using our own oil and putting good Canadians back to work.

Del
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Del

America is expediting the pipeline permitting process to protect their country and economy. Trudeau is still waiting until the last enviro-fascist and the last Native in Northern Ontario gives her permission to build a pipeline. It is critical to have 100% agreement on everything except when it comes to what Trudeau wants, then inconvenient laws simply get in the way and have to be manipulated.

Shawn Harris
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Shawn Harris

More proof that Trudeau’s anti oil message and hatred for the oil industry,is a gigantic mistake. This deliberate attack on Saudi oil, opens a great opportunity for Canadian oil companies to increase production and employ more workers; but Trudeau in his know it all brilliance believes Canada is better off phasing out our oil industry, rather than expand our economy and raise the living standards of everyone, especially those in Alberta and Saskatchewan. And to think how that extra revenue would help to payback at least some of the totally unnecessary money Trudeau borrowed; without having to raise our taxes.… Read more »

William Jones
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Ya just gotta have a reason to ensure the price of oil (hence, gas) will go up just just in time for the cold weather to hit. Interesting, is it not? Truthful — is it?

Larry
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Larry

I was reading a week or so ago some reports in various news how the Saudi’s need $85 a barrel oil just to balance their budget. Seems they’re in a bit of a pickle. Then this happened, one of those things that makes you go hmmmmmm. A very convenient coincidence?