How Does the Attack on the Saudi Arabian Facility Affect the Oil?
Brent oil wiped its earnings with the impact of the attack on the world’s largest crude oil terminal in Saudi Arabia.
Futures in London surged to over $ 71 a barrel, the highest since January 2020.
Saudi Arabia reported that the attack on a storage tank in Ras Tanura on Sunday was halted and oil production remained unaffected.
Oil has recovered amidst OPEC+ supply cuts and economies emerging from the coronavirus crisis, driven by increased demand.
After the producer alliances pledged to keep production steady in April, the uptrend accelerated last week, prompting many banks to increase their price forecasts.
Norbert Ruecker, an economist at Julius Baer, said, “Economic recovery, vaccination progress and supply constraints by oil-national countries point to even higher prices in the near term”
There is a mixed picture for crude oil in the broad markets. US President Joe Biden is close to implementing the $ 1.9 trillion Covid-19 aid plan and is on the verge of its first legislative victory.
The rise of the US dollar decreases the attractiveness of commodities priced in currency. US equity futures continue to deepen losses.
Saudi Arabia has increased its official sales prices to buyers in the region for April.
Middle Eastern Tensions
Saudi Arabia said the Ras Tanura field on the Gulf coast was targeted by a drone from the sea.
The terminal has the capacity to produce approximately 6.5 million barrels per day. This is almost 7 percent of demand and as such, it is one of the most protected facilities in the world.
It is seen as the most serious attack on Saudi oil facilities since an attack in September 2019 that caused a fire on a major processing plant and two oil fields.
How Does the Attack on the Saudi Arabian Facility Affect the Oil?
Source: https://finance.yahoo.com/
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