Saudi Shuts Down Half Its Oil Output After Drone Strikes… Massive Fires… Crude To Hit $100? WSJ: This Is the Big One…

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U.S. Blames Iran for Attack on Saudi Oil Fields

Breaking News:

*U.S Blames Iran for Attack on Saudi Oil fields

* There is “no evidence the attacks came from Yemen” – Secretary of State Mike Pompeo

* Pompeo blames Iran for “unprecedented attack” on the world’s energy supply

(Article below will update)

Coordinated drone strikes on the heart of the Saudi oil industry forced the kingdom to shut down half its crude production on Saturday, people familiar with the matter said, potentially roiling petroleum prices and demonstrating the power of Iran’s proxies.

Yemen’s Iranian-aligned Houthi rebels claimed credit for the attack, saying they sent 10 drones to strike at important facilities in Saudi Arabia’s oil-rich Eastern Province. The production shutdown amounts to a loss of about five million barrels a day, the people said, roughly 5% of the world’s daily production of crude oil.

Officials said they hoped to restore production to its regular level of 9.8 million barrels a day by Monday.

Iran-backed militants admit drone swarm strike on world’s largest oil processing plant in Saudi and at second nearby facility sparking huge fires as tensions reach boiling point following tanker attacks

  • Drone attacks sparked fires at Aramco oil facilities in eastern Saudi Arabia today
  • Attacks took place at 4:00am at world’s largest oil processing plant Abqaiq
  • The Saudi interior ministry said the fires have now been brought under control 
  • Iran-backed Houthis claimed responsibility for attacks in Buqyaq and Khurais 
  • Tensions are running high in the region after attacks in June and July on oil tankers in Gulf waters that Riyadh and Washington blamed on Iran

 

Oil To Hit $100? Half Of Saudi Oil Output Shut After Drone Strikes Cripple World’s Largest Oil Processing Facility

Update: The WSJ is out with an update hinting at just how much the price of oil is set to soar when trading reopens late on Sunday after the Saudi Houthi false-flag drone attack on the largest Saudi oil processing plant:

Saudi Arabia is shutting down about half of its oil output after apparently coordinated drone strikes hit Saudi production facilities, people familiar with the matter said, in what Yemen’s Houthi rebels described as one of their largest-ever attacks inside the kingdom.

The production shutdown amounts to a loss of about five million barrels a day, the people said, roughly 5% of the world’s daily production of crude oil. The kingdom produces 9.8 million barrels a day.

And while Aramco is assuring it can restore output quickly, in case it can’t the world is looking at a production shortfall of as much as 150MM barrels monthly, which – all else equal – could send oil soaring into the triple digits. Just what the Aramco IPO ordered.

Saudi Oil Attack: This Is the Big One

The technological sophistication and audacity of Saturday’s attack will linger over the energy market

 

Iran-backed rebels claim attacks…
Arab coalition will counter threats…

 

 

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