Tuesday, July 5, 2022

Dr Mahathir: Aramco plant attacks are expected to impact global oil prices


Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at wnobserver.com

Malaysian Prime Minister Dr Mahathir Mohamad said on Sunday that the attacks on Aramco oil plant in Saudi Arabia are expected to affect world oil prices, including Malaysia.

However, in Malaysia, the Prime Minister explained, the government subsidized the fuel price hike compared to other countries which had raised their taxes.

“If Saudi Arabia had to stop refining oil refineries for a million barrels of oil, it would have affected global oil prices”, Mahathir said.

“In Malaysia, when oil prices go up, we subsidize. In the United Kingdom (UK) if oil goes up, they raise taxes. For UK, people don’t complain. In Malaysia, oil prices are the lowest in the world”, Dr Mahathir said at a press conference on Sunday.

The attack led to a temporary suspension of production at the Abqaiq and Khurais plants, said its Energy Minister, Prince Abdulaziz Salman.

At week close WTI stood at $54.82 a barrel.

On Saturday, several drone attack hit Saudi Arabia’s largest oil refinery and triggered fires. A spokesman for the Saudi Ministry of Interior told the state owned news agency SPA that drone strikes on two complexes of the state oil company Saudi Aramco in Abqaiq and Khurais provinces  have broken fire. The fires are now under control.

The operation were known by the Houthi rebels from neighboring Yemen. Drone attack was a legitimate response to the ongoing military campaign in Saudi Arabia from  Yemen, said a military spokesman for the Houthis.

“We promise the Saudi regime that our next operation will be bigger and more painful”, the military spokesman Jahia Saria said on Saturday. It is the largest use of drones from Houthis so far in Saudi Arabia.

Saudi Arabia leads a military coalition in Yemen against the Houthi rebels. These are supported by Iran and keep large parts of the North Yemen including the capital Sana under control.

In recent months, the Houthis have made several drone attacks on oil pipelines and airports in Saudi Arabia.

Abqaiq is located approximately 330 kilometers northeast of the Saudi capital Riyadh. According to the state oil company Saudi Aramco, the complex is the largest oil refinery in the group.

According to the company, the complex plays a central role in the Group’s daily oil production. It is still not confirmed that the drone attacks affected the daily oil production. Khurais is one of the largest oil fields in Saudi Arabia.

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

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