Oil prices surge in wake of drone attack on Saudi Aramco

London: The global oil supply was disrupted by drone attacks on two Saudi Arabian oil plants on Saturday, as ensuing fires brought to a halt the production of 5.7 million barrels of crude oil per day.

A Saturday morning drone attack on two Saudi Aramco plants, in Abqaiq and Khurais, claimed since by Yemeni Houthis, sent crude prices surging.

By early Monday, US crude oil was up $4.89 per barrel, or 8.9% in electronic trading on the New York Mercantile Exchange, to $59.73 per barrel.

Brent crude, the international standard, soared $6.02 per barrel, or 10%, to $66.25 per barrel.

Earlier, US crude jumped more than 15% and Brent rocketed nearly 20%.

Although prices moderated on expectations that reserves would efficiently bridge shortfalls in output, analysts perceive a more protracted rise in oil prices as potentially damaging to the global economy.

The attack and supply disruptions are seen as particularly worrying for countries in Asia that rely heavily on Saudi oil supplies.

Two imminent risks: oil shortage and soaring prices

Francis Perrin, a senior fellow at the Rabat, Morocco-based Policy Centre for the New South and the French Institute for International & Strategic Affairs in Paris, gave his forecast of the fallout from the recent developments, saying they were extremely important for the world oil market.

AlamulKhabar Business