Oil prices jump the most ever after Saudi strike

[Yo_Mama_Been_Loggin]

Source: Bloomberg

Oil surged the most ever after a strike that wiped out about half of Saudi Arabia’s output capacity heightened concern about more destabilization in the world’s most important crude-producing region.

In an extraordinary start to trading on Monday, London’s Brent futures leaped almost $12 in the seconds after the open, the most in dollar terms since their launch in 1988. Prices have since pulled back about half of that initial gain but, with Saudi officials downplaying prospects for a rapid recovery, crude is heading for the biggest advance in almost three years.

For oil markets, it’s the worst sudden disruption ever. The attacks that damaged a key processing complex and one of the kingdom’s marquee fields highlight the vulnerability of the world’s biggest exporter. The crisis also means a “new geopolitical premium” of about $5 a barrel, Mizuho Securities USA’s Paul Sankey wrote in a note.

“We have never seen a supply disruption and price response like this in the oil market,” said Saul Kavonic, an energy analyst at Credit Suisse Group AG. “Political-risk premiums are now back on the oil-market agenda.”

Read more: https://www.msn.com/en-us/money/markets/oil-prices-jump-the-most-ever-after-saudi-strike/ar-AAHlgH9?li=BBnbfcN

[pwb]

1. Thanks Trump.

.

[cstanleytech]

2. Hmm, makes me wonder if the whole thing was staged simply to drive up oil prices. nt

[OnlinePoker]

3. Well, Saudi Aramco has been delaying their IPO, hoping oil prices would go up.

Whenever it happens, it's expected to be the largest IPO in history. What a beneficial event to happen for them if the prices stay up.

[Loki Liesmith]

4. Let's see when they IPO

[CousinIT]

5. If the US is the top producer now of oil & gas why would OUR prices go up

Since we no longer rely on Saudi oil?

[pwb]

6. Because the pukes approved refined oil exports.

After decades of saying we should be independent. We could be if it all stayed here. They fucked that up too.

[Lucky Luciano]

9. We export oil too and Brent/WTI oil are roughly fungible products, so if the spread is too high...

...between the two, an arbitrage occurs because the cost of shipping to Europe doesn’t change much.

[Tactical Peek]

7. The most ever? Or the most in 10 years. Or in fifteen years, whatever?

'In dollar terms' can be misleading.


. . . Brent jumped more than 19% to $71.95 a barrel on ICE Futures Europe, its biggest gain in percentage terms since 1991.

. . . When it finally started trading, WTI jumped more than 15% to $63.34, the most since 2008.


It appears to not be the most ever by percentage, which is to say not the most ever. It is a deceiving headline in my view and, sadly, the article fails to note the actual largest jump ever as far as I can tell, but it must be before 2008 at least.

[ffr]

8. There was another lesser known attack on Tesla electron refining facilities too

But they missed. The terrorists attempted to shut down the Sun, but were unsuccessful when their drones were incinerated prior to reaching their destination.

Thus far, EV charging rates were unchanged on Monday for various Tesla owners at $0.00/supercharging Kwh.

[Ford_Prefect]

10. Price hike was the intended outcome & has been for some time.

This is Gulf war III warming up in the bullpen. In which the Saudis arranged yet another Pipelineistan war against their market competition to be paid for and fought by US taxpayers.