JAKARTA (TheInsiderStories) – Oil prices soared after drone attack on Saudi Aramco facilities last weekend. On Monday, Brent crude oil futures jumped around 19 percent to US$71.95 a barrel, making the biggest intra-day gain since the Gulf War in 1991.
While, United States (US) West Texas Intermediate rose more than 15 percent to $63.34 a barrel. Aramco stated that the attacks resulted in production suspension of 5.7 million barrels of crude oil per day.
Amin H. Nasser, Aramco President & CEO, said: “I would like to thank all teams that responded timely to the incidents and brought the situation under control. Work is underway to restore production and a progress update will be provided in around 48 hours.”
The oil price is predicted to remain uncertain along with statement of Yemen-backed Houthi rebels warned of more attacks on key oil facilities in Saudi Arabia, said the spokesman Yahia Sarie as reported by global media.
The Houthis have claimed the attacked but United States (US) has blamed Iran. But the country has denied being involved in the attack as stated by US’ Secretary of States Mike Pompeo.
President Donald Trump also rated that “it’s looking like” Iran was behind the attacked but suggested it was too early to say for sure, CNN reported. He also insisted that he does not want war with Iran, but he noted the US has the best weapons systems.
“Remember when Iran shot down a drone, saying knowingly that it was in their “airspace” when, in fact, it was nowhere close. They stuck strongly to that story knowing that it was a very big lie. Now they say that they had nothing to do with the attack on Saudi Arabia. We’ll see?,” Trump tweeted yesterday.
Commenting on Trump statement , Iranian Foreign Ministry spokesman Seyyed Abbas Mousavi rejected the accusation that Iran was behind the attack. He asserted, “Such blind accusations and inappropriate comments in a diplomatic context are incomprehensible and meaningless.”
Addressing the situation in the Middle East, the Organization of the Petroleum Exporting Countries (OPEC) is assessing the impact on the oil market, says it is too early for members to take any action on raising output or holding a meeting.
As reported, the United Arab Emirates’ (UAE) energy minister Suhail al-Mazrouei claimed his country was able to boost output to deal with any supply disruptions. He claimed, the country have spare capacity.
“There are volumes we can deal with as an instant reaction. But if Saudi Arabia called for an OPEC emergency meeting, we will deal with it,” said the minister on Monday.
Followed the Aramco attacked, OPEC Secretary General Mohammad Barkindo discussed the oil market with the head of the US’ International Energy Agency (EIA), Fatih Birol, source told Reuters. No further details on the discussion.
Beside UAE, Trump assured that his country have a capacity to supply the crude oil to the market. He stated, “I have authorized the release of oil from the Strategic Petroleum Reserve, if needed, in a to-be-determined amount sufficient to keep the markets well-supplied.”
Trump added, “I have also informed all appropriate agencies to expedite approvals of the oil pipelines currently in the permitting process in Texas and various other States.”
What the impact for Indonesia, finance minister Sri Mulyani Indrawati said the oil installation fire in Saudi Arabia could lead to new vulnerabilities to global economic conditions. She rated this incident could be a new source of uncertainty because world oil supplies.
“This disruption will lead to price increases, and there has been an increase in just one day. We see the impact is permanent or only temporary,” said the minister.
On Saturday, Yemeni guerrilla groups allied with Iran, Al-Houthi, last weekend attacked two Aramco‘ oil installations, including the largest oil processing installation in the world. The incident occurred after a cross-border attack on Saudi oil installations and oil tankers in Gulf waters.
by Linda Silaen, Email: email@example.com