Brent heads for largest daily gain since first Gulf War

Economies.com
2019-09-16 13:22PM UTC

Brent kept its gains as the US market opened today, jumping to a 2-month high, and the largest daily rise in percentage since the Gulf War in 1991, after a sabotage attack on 2 Saudi oil facilities, which led to a cut of 5% of the global supply production.

 

Brent rose by 11.8% to $67.21 a barrel (its highest since July 15th), as it closed on Friday at $60.21, with an intraday low of $64.84.

 

On Friday, Brent futures shed 0.5%, in its fourth daily loss, on global supply glut fears.

 

During last week, oil prices shed 3%, their first weekly loss in the last three weeks, on reports about the US easing Iran's sanctions.

 

In Saudi Arabia on Saturday, a sabotage attacks was done on 2 Aramco oil facilities in Abqaiq and Khurais in the Eastern region, which led to the stoppage of 5% of the global supply production.

 

Aramco, which is the largest oil company in the world, said the attacks led to a cut by 5.7 million bpd in oil production, which is about 50% of the Saudi production, while the company did not announce the date for the resumption of production, but it's estimated for several weeks.

 

While the company was preparing for the listing on the stock markets, came this attack on Saudi Arabia's oil industry.

 

The authorities stated that the fires in Abqaiq and Khurais facilities are under control but sources say that the fires were not extinguished yet, with significant casualties and the production resuming in several weeks. 

 

Reuters quoted a source saying that Saudi Arabia's oil exports will continue as usual this week, as it will use major facilities' inventories to meet commitments.

 

President Trump announced on Sunday his approval of using the US strategic oil inventories to support the supply in the market.

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