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Oil prices jump 12% post attack on Aramco facility in Saudi

SAUDI-ARAMCO-FIRE
Smoke is seen following a fire at an Aramco factory in Abqaiq, Saudi Arabia, September 14, 2019 in this picture obtained from social media. via Reuters

The drone attack on  Saudi Arabia’s oil processing facility has begun to take its toll on global markets, as the global benchmark oil price, the Brent crude, jumped nearly 12 per cent on Monday.

This was one the biggest-single day leap in recent times, which came after drone attacks at the world’s largest oil processing facility at Aramco in Saudi Arabia.

Owing to subdued demand and trade tension the Brent Crude declined for the fourth consecutive session on Friday. The Brent crude oil prices had closed on Friday, slightly higher than the $60 per barrel.

The drone attacks claimed by Yemen’s Houthi rebels set alight two major oil facilities run by the state-owned company Aramco in Saudi Arabia on Saturday, the Kingdom’s Interior Ministry said.

The Saudi Press Agency, citing a statement by the Ministry, said that the drones caused the fire at the refinery in the city of Abqaiq in the Kingdom’s oil-rich Eastern Province, as well as the blaze at the Khurais oil field, around 150 km from Riyadh.

Brent Crude is a major trading classification of sweet light crude oil that serves as a benchmark price for purchases of oil worldwide. This grade is described as light because of its relatively low density, and sweet because of its low sulphur content.

(With inputs from IANS)

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