Drone strike forces Saudis to cut production IN HALF - Pepper you Angus
This has the potential to be significant. These sorts of actions by non-state players limit the Saudisí ability to respond. The USí, too. Traders will likely consider this an ongoing and persistent risk and apply it as a cost to the overall price of oil going forward. The more common and successful these attacks, the more expensive itís going to get.
Iíll go one step further by saying that if oil prices spike and remain high for more than a couple of months, it will be the tipping point for the recession that everyone is so worried about.
Why Would Any Sane Person Want This To Be Bigger Than It Is?
The attack will cause an initial disruption but again, keep it in perspective, the amount in reserves and the nations still pumping can and will make up for the loss.
In a statement carried by the Saudi Press Agency (SPA), Prince Abdulaziz said the attacks "resulted in a temporary suspension of production at Abqaiq and Khurais plants".
The Khurais oilfield produces about 1% of the world's oil, and Abqaiq is the company's largest facility - with the capacity to process 7% of the global supply.
He said that part of the reduction would be compensated for by drawing on Aramco's oil stocks.
The situation was under control at both facilities, Aramco CEO Amin Nasser said, adding that no casualties had been reported in the attacks."