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Oil prices surge after Saudi attack hits 5% of global supply [Copy link] 中文

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Post time 2019-9-16 15:53:24 |Display all floors
Oil prices surged more than 15 percent to their highest level in nearly four months at the open on Sunday after an attack on Saudi Arabia's oil facilities on Saturday that knocked out more than five percent of global oil supply.

Brent crude futures jumped more than 19 percent to a session high of 71.95 U.S. dollars a barrel at the opening, while U.S. crude futures surged more than 15 percent to a session high of 63.34 U.S. dollars a barrel. Both benchmarks rose to the highest since May.


Price gains were capped after U.S. President Donald Trump said he authorized the release of oil from the U.S. Strategic Petroleum Reserve (SPR) if needed in a quantity to be determined because of the attack on Saudi's facilities.

State oil giant Saudi Aramco said the attack cut output by 5.7 million barrels per day, at a time when Aramco is trying to ready itself for what is expected to be the world's largest share sale.

Aramco gave no timeline for output resumption. A source close to the matter told Reuters the return to full oil capacity could take "weeks, not days."

Saudi Arabia's oil exports will continue as normal this week as the kingdom taps into stocks from its large storage facilities, an industry source briefed on the developments told Reuters on Sunday.

"The surge in prices is the natural knee jerk reaction but the path ahead and ability to sustain at elevated levels remains dependent on the duration of the outage, the ability to meet export commitments through domestic drawdowns, demand elasticity at higher prices as well as government and agency policy," said Michael Tran, managing director of energy strategy at RBC Capital Markets in New York.

"Even if the outage normalizes quickly, the threat of sidelining nearly six percent of global oil production is no longer a hypothetical, a black swan or a fat tail. Welcome back, risk premium."

The attack on plants in the heartland of Saudi Arabia's oil industry, including the world's biggest petroleum-processing facility, came from the direction of Iran, and cruise missiles may have been used, according to a senior U.S. official.

Iran on Sunday labeled the allegations as "meaningless," suggesting Washington was seeking a pretext to retaliate against the Islamic republic.

"Saudi authorities have claimed to control the fires, but this falls far short of extinguishing them," said Abhishek Kumar, head of analytics at Interfax Energy in London.

"The damage to facilities at Abqaiq and Khurais appears to be extensive, and it may be weeks before oil supplies are normalized," Kumar said.

Saudi Arabia is set to become a significant buyer of refined products after attacks on Saturday, consultancy Energy Aspects said in a note.

State oil firm Saudi Aramco will likely buy significant quantities of gasoline, diesel and possibly fuel oil while cutting liquefied petroleum gas exports.

Source(s): Reuters

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Post time 2019-9-16 16:33:16 |Display all floors

US procliams Saudi Arabia is its close ally!

Purchasing top US military hardware, US is considered to have armed Saudi Arabia from teeth to toe but only and only to be STRIKE without warning with this kind of disaster!

Where is US and what was US doing all the while? Must be cocktail party over the weekend with good food and telling the world that it is protecting Saudi Arabis to the core for all aspects!

Now, all it took was a sting by some small flies!

Taiwan and other nations buying US weapons must realize the truth! No one protects oneself!

US has all reasons to explain this attack!

IT WAS SAUDI ARABIA THAT MUST ANSWER!








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Post time 2019-9-18 10:38:16 |Display all floors
Is the black swan in flight?

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Post time 2019-9-18 14:35:03 |Display all floors
GhostBuster Post time: 2019-9-16 16:33
US procliams Saudi Arabia is its close ally!

Purchasing top US military hardware, US is considered ...

re: "reasons to explain this attack!"
US has all reasons to be happy...


  They don't need to explain...

    They hardly buy any oil from them, but their oil price went up the most...

     Huge salt cave reserves can be sold off at a premium, China, India, Japan, Singapore and Taiwan need to pay the exploded oil price...
   Finally, them Nations need to buy uncle Sam's black gold...  they THINK

   Something must have fallen off during a fast high gear change and scrambled the mechanism controlling optogenetics of their brain...




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Post time 2019-9-18 19:35:03 |Display all floors



Probably, it was THE UNTOUCHABLE IN US that led this attack so as to push oil price to new high!

GREAT!


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Post time 2019-9-19 11:49:47 |Display all floors
The US is scrambling to pin the attack on Iran, as it did the chemical weapons attacks on the Syrian government...

By the way, where are those White Helmets now? They have all run for the hills and settled in the countries of their handlers to render an independent investigation impossible.
Believe it or not, it's true.

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Post time 2019-9-19 18:42:02 |Display all floors
Liononthehunt Post time: 2019-9-19 11:49
The US is scrambling to pin the attack on Iran, as it did the chemical weapons attacks on the Syrian ...

Lion, everything as ordered...


    We wouldn't want to see the TRUE results of an independent investigation...

   Would we now, should we ever know, what could we do...Honestly...  

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