Oil could soar if there's a military escalation after Saudi attack

[Yo_Mama_Been_Loggin]

The growth of the U.S. as both an oil producer and an exporter is helping to cap a spike in crude prices after attacks on Saudi Arabian oil facilities, but the price could go sharply higher, depending on the duration of the disruption and whether it escalates into a military conflict.

The weekend attack on the Saudi Aramco's Abqaiq processing facility and another plant knocked 5.7 million barrels of Saudi production off line and underscores a new realization of vulnerability in world oil production. That is 5% of global oil output and about half of Saudi's production, but Saudi Arabia has sufficient supplies to maintain its current export level for about a month.

Oil prices initially spiked nearly 20% in trading Sunday evening but were up just about 12% in U.S. trading Monday, the biggest one-day move since Feburary, 2016. Brent was trading at $67.48, up 12%.

"What the market is pricing is geopolitical risk premium and tail risk. Something like this has never happened before. There have been attempts but those were foiled," said Amarpreet Singh, Barclays energy analyst. "Something like this to Saudi supply has absolutely never happened, even during the Gulf War."

https://www.msn.com/en-us/money/markets/oil-could-soar-if-theres-a-military-escalation-after-saudi-attack/ar-AAHo5B9?li=BBnb7Kz

[Sherman A1]

1. Could?

I believe Will Soar is much more likely.