Oil prices surge sharply in response to drone attacks on Saudi Arabia’s oil production on Saturday. State energy producer Saudi Aramco lost about 5.7 million bps of output, which is the largest oil disruptions in history. That’s followed by 5.6m bpd loss in Iranian resolution in late 70s.
Saudi Arabia would need weeks to restore full output capacity even though some halted oil production would be restarted within days. Some noted that the attack highlighted the vulnerability of the infrastructure to attack. Also the tensions have intensified as US President Donald Trump said the US is “locked and loaded depending on verification” that Iran staged the attack.
WTI crude oil jumped to as high as 61.24 earlier today but it’s back below 60 for now. We’ll see if it can sustain above 60.93 resistance as the development unfolds.
