Oil jumps by 10% after sabotage attacks on Saudi facilities

Oil prices surged by more than 10% today, to 2-month high, and the largest daily rise since the Gulf War in 1991, after a sabotage attack on 2 Saudi oil facilities, which led to the stoppage of 5% of the global supply production.

WTI rose by 10.5% to $60.63 a barrel (its highest since July 15th), as it closed on Friday at $54.87.

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, WTI shed 0.4%, and Brent futures shed 0.5%, their fourth daily loss, on global oversupply 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.