Oil prices jump after attack in Saudi Arabia
by Onize Ohikere
Posted 9/16/19, 12:12 pm
President Donald Trump on Monday said the United States is “locked and loaded” to respond to the bombings of two Saudi energy facilities. The drone attacks on Saturday hit a major oil processing plant in Abqaiq, Saudi Arabia, halving the kingdom’s oil production rates. Yemen’s Iran-backed Houthi rebels claimed responsibility, but satellite imagery showed the drones came from either Iran or Iraq.
How will this affect the global market? The attack halted production of 5.7 million barrels of crude oil, the greatest disruption on record for world markets. Crude oil prices spiked but have since deflated some throughout Monday morning as traders brace for the long-term effects. Saudi Arabia said it would supply the global market from its stockpiles as it repairs the damage. Trump also said he approved the release of the U.S. strategic petroleum reserves “if needed.”
Dig deeper: Read Onize Ohikere’s report in World Tour about the humanitarian crisis Yemen’s civil war is causing.
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Onize is a reporter for WORLD Digital based in Abuja, Nigeria.