Saudi Oil Attacks

Saudi Oil Attacks

Kingdom of Saudi Arabia is known for its Petroleum. It is the world’s second largest oil producer and the world’s largest oil exporter. Recently on early Saturday morning (14-09-19) petroleum and gas processing plants in khurais and Abqaiq.

Several projectiles struck the Abqaiq plant, starting a series of fires that quickly took out nearly half Saudi’s oil production 5% of the global daily output and sparking fears about the security of the world’s oil supplies.

It’s never known when Abqaiq, which is operated by Saudi giant Aramco, will be fully operational again.

Houthi rebels in Yemen claimed the attack.

Late Saturday, Secretary of State Mike Pompeo twetted: “Iran has now launched an unprecedented attack on the world’s energy supply.” And he added: “There is no evidence the attacks came from Yemen.”

Iranian Foreign Minister Javad Zarif accused Pompeo of engaging in deception. He wrote on twitter: “Having failed at ‘max pressure’, @SecPompeo’s turning to ‘max deceit’ US & its clients are stuck in Yemen because of illusion that weapon superiority will lead to military victory. Blaming Iran won’t end disaster.”

The US government has produced satellite photos showing what officials said were at least 19 points of impact on Saturday at two Saudi energy facilities, including damage at the heart of the kingdom’s crucial oil processing plant at Abqaiq.

19 points of impact on the targets and the attacks had come from a west-north-west direction not Houthi-controlled territory in Yemen, which lies to the south-west of the Saudi oil facilities.

Saudi Arabia’s oilfields and pipelines have been targeted by rebels over the past year but never on such a scale and causing such disruption. Analysts warned that global supplies of oil are likely to suffer a “major jolt” following the attack. As the incident has cut global oil supplies by 5% and prices have soared.

No casualties were reported but the full extent of the damage from Saturday’s attack was not clear, nor the type of weapons used.

Oil prices rose in the wake of the attack to reach six-month highs on Monday, with gains of as much as 20%. Brent crude oil, the international benchmark, gained almost $12 a barrel reaching up to $71.95 a barrel, before dropping back to $68 a barrel.