World’s oil output down by more than 5% after attacks on Aramco facilities
The latest OPEC figures put total Saudi production at 9.8 million barrels/day, which approximately accounts for 10% of the total global supply of 100 million barrels/day.
Saudi Energy Minister Prince Abdulaziz bin Salman stated on Sunday that 5.7 million barrels/day of crude oil and gas production have been affected. He further noted, “Aramco has been currently working to recover the lost quantities.” According to some media sources, the Saudi giant is aiming to restore about a third of its crude output (around 2 million barrels per day) by Monday.
Market players expect the incident to cause crude oil prices to spike as of early this week. Still, the impact might be modest depending on how quickly Aramco is able to resume oil production.
On Sunday, a source from Aramco reported to ChemOrbis, “There were no injuries from the staff, fortunately. We will provide clarification and actual estimate of the real damage and production updates within 48-72 hours. For now, oil supply from Saudi Arabia will be short by 50%.”
Crude oil prices have spiked in the morning of Asian trading hours on Monday following the news, as ICE Brent crude futures reportedly skyrocketed by around 10% to $66.31/barrel, while NYMEX (WTI) crude futures jumped by around 9% to $59.83/barrel.
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