Saudi stock market dives, crude futures to jump after drone attack on oil plants

[jpak]

Source: CNBC

DUBAI ⁠— Saudi Arabia’s stock market fell by 2.3% at Sunday’s open as the country grappled with weekend drone attacks on the heart of its oil production facilities in Abqaiq and Khurais claimed by Yemen’s Houthi rebels.

Reports that the country may take weeks to return to full oil supply capacity is set to send crude futures up by as much as $10 per barrel, analysts say, depending on the scale of the damage. Half the country’s oil production was halted due to fire damage and an assessment of the situation is due on Monday, Saudi energy ministry officials said. They have not yet offered a timeline on full production restoration.

“A small $2-$3 premium would emerge if the damage appears to be an issue that can be resolved quickly, and $10 if the damage to Aramco’s facilities is significant leasing to prolonged supply outages,” Ayham Kamel, practice head for the Middle East and North Africa at Eurasia group, said in a research note Sunday. That’s up to 25 cents higher per gallon of gasoline.

Abqaiq, in the kingdom’s eastern province, is the world’s largest oil processing facility and crude oil stabilization plant with a processing capacity of more than 7 million barrels per day (bpd). Khurais is the second largest oil field in the country with a capacity to pump around 1.5 million bpd.

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Read more: https://www.cnbc.com/2019/09/15/saudi-stock-market-dives-crude-to-jump-after-attack-on-oil-plants.html

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[SWBTATTReg]

1. Overreacting, I'd say. Speculators as usual, trying to score a few bucks off the whole mess. ...

I hope before rump goes charging in and/or blaming the Iranians, and/or attacking them in retaliation, that clear and non refutable evidence is presented to US voters.

[Hoyt]

2. Heck, our markets drop 2% when the Racist-in-Chief tweets.

[Iwasthere]

3. Drops?

Goes up, considerably, when he tweets he has called China and IS meeting with them. When he's done neither and admitted it didnt he, fucker! There should be a law, oh wait!

[walkingman]

5. Yep, he is a con man as was his father

[Wellstone ruled]

4. The Options Players will score big time tonight and tomorrow.

[ck4829]

6. Kick

[Brother Buzz]

7. Dow Jones is down, too, but curiously

Lockheed Martin, Raytheon, and Northrop-Grumman shot UP!. Go figure.