Global oil price to jump after Saudi Arabia suspends oil production following drone attacks

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Global oil price to jump after Saudi Arabia suspends oil production following drone attacks
Global oil price to jump after Saudi Arabia suspends oil production following drone attacks

Global oil price likely to jump after Saudi Arabia temporarily suspends oil production at two Aramco oil plants attacked by Yemeni rebels, disrupting about half of the company’s total production.

The attack led to a temporary suspension of oil production at the Abqaiq and Khurais plants, said Prince Abdulaziz bin Salman, in a statement published by the SPA news agency.

This leads to disruption of about 50 percent of total Saudi production.

“The attack led to a suspension of 5.7 million barrels of crude oil per day”, Aramco said in a separate statement.

Aramco chief executive officer Amin Nasser said work is underway to continue production and further development will be given within two days.

Houthi rebel drone attacks on Abqaiq and Khurais, two of Aramco’s major facilities in eastern Saudi Arabia, have been the latest in a series of attacks on the country’s oil fields in recent months.

Naseer said no injuries were reported in the attack.

Houthi rebels said they had launched a large-scale operation involving 10 drones at the facility, reports the group’s television, Al-Masirah.

Meanwhile, US Secretary of State Mike Pompeo blamed Iran for the attack.

“Iran is launching an unprecedented attack on the world’s energy supply,” he said.

Analysts feared that the global oil price will incline following the suspension of production in Aramco plants.

Read also: Drone attack hits Aramco oil refinery in Saudi Arabia