Oil prices jump 18% after weekend drone attack on Saudi Arabian oil fields, infrastructure

[RandySF]

Oil prices jumped on global markets Sunday night after a wave of weekend drone attacks instantly erased half of Saudi Arabia’s oil production.

Brent crude traded at $70.98 per barrel on oil futures markets Sunday, an 18 percent surge from Friday’s close of $60.15. U.S. benchmark West Texas intermediate crude opened at $61.27 per barrel, a 12 percent climb.

The attack on Saudi Arabia’s oil infrastructure immediately knocked out 5.7 million barrels — nearly 6 percent — from the 100 million barrels a day the world consumes.

“A supply disruption on this scale is an extraordinary event,” said Pavel Molchanov, an oil analyst with Raymond James. “No single disruption on this scale has occurred in decades.”

U.S. oil prices have been trading in a belt between $50 and $60 a barrel in the past six months. Brent crude, the global benchmark, has been trading slightly above that range. Most oil companies and nations favor world oil prices in the $70 to $80 range, which allows a healthy profit without rattling the economy or sparking a rush for alternatives to petroleum.



https://www.washingtonpost.com/business/2019/09/15/oil-prices-jump-after-weekend-drone-attack-saudi-arabian-oil-fields-infrastructure/

[BigmanPigman]

1. I bet that prices would go up even if hardly much damage

was done. It is typical BS marketing to pass all losses onto the customers and make sure the loss is triple the real loss.

Another reason for alternate sources of energy. How many wars have been fought over oil in the past 75 years? Politicians/corrupt leaders don't have control over the sun and wind.

[AJT]

2. Will Russia benefit from this?

[walkingman]

3. The Oil oligarchy has been guilty of price fixing for decades and yet nothing is ever

said or done. We cannot get rid of the fossil fuel industry soon enough.

[democratisphere]

4. This is all on drumpf and his regime.

[safeinOhio]

5. Just got back from topping off.

Expect 30 to 60cent jump in the morning.

[FBaggins]

6. Good

That was the low end of projections and probably means that the outage isn’t expected to last long at the reported level

[TeamPooka]

7. This makes more money for Putin. He lives on petrodollars.