Oil Prices Close 15% Higher on Record Trading Day:=
Oil prices spiked on Monday, two days after the largest oil disruption in history took place.
Saudi Arabia lost 5.7 million barrels per day (mb/d) of production after the Abqaiq facility was attacked on Saturday, shuttering more than half of the country’s oil production. The disruption is larger than was lost during the Iranian Revolution in 1979, Iraq’s invasion of Kuwait in 1990, and even during the Arab Oil Embargo in 1973, as Bloomberg notes. Brent briefly surged by more than $11 per barrel at one point during intraday trading on Monday, the largest increase in the benchmark’s history dating back to 1988.
Early accounts indicate that Saturday’s attack may have come from a group of drones, while other analysts believe it was carried out by cruise missiles. It’s also possible there was a combination of both.
Abqaiq is a critical oil processing facility in Saudi Arabia, a chokepoint that has no easy workaround. The facility does not make press headlines, but oil experts have long been aware of its critical importance – and vulnerability.
INDIA”S NO 1 ADVISORY