Oil price could rise $10 per barrel after drone attack in Saudi Arabia
- 5 years ago
Mounting concerns over a possible hike in global oil prices in the aftermath of the attacks on two major oil plants in Saudi Arabia over the weekend.
Many countries are bracing for impact as pundits say prices might spike up to 10 dollars per barrel.
Kim Mok-yeon starts us off this morning with Saudi oil attack a 'game changer' on global oil.
A spike in global oil prices seems to be inevitable in the aftermath of Saturday's drone attacks on Saudi Arabia's main oil processing plants, which had been accountable for some 5 percent of the global oil supply.
The nation's state-run oil company Saudi Aramco, has temporarily closed its facilities, which many experts expect will cause a lack of supply, leading to higher global oil prices.
Saudi Arabia's energy minister Abdulaziz bin Salman says the strikes will cut the kingdom's oil output by 5-point-7 million barrels a day.
The results are expected to deal a big blow to many countries including South Korea, Japan and China which each import around 4 million barrels of Saudi crude oil on average every day.
Global oil prices have recently been low, with Brent crude, the global benchmark closing at 60.22 U.S. dollars per barrel on Friday.
But some experts forecast the price to increase by 10 dollars per barrel when markets open on Monday.
Meanwhile, a top U.S. official said that Washington is ready to make use of its Strategic Petroleum Reserve if needed to stabilize the global energy supply.
Speaking in an interview with Fox News on Sunday, White House adviser Kellyanne Conway said that the U.S. Energy department is prepared to tap into its emergency fuel reserves to cope with the situation.
Conway also did not rule out a possible meeting between the leaders of the U.S. and Iran on the sidelines of the UN General Assembly this month, but still stressed that the attack did not help that prospect.
Washington had blamed Iran for the attacks, but Iran denied involvement, criticizing Washington for its quote "blind and futile" comments.
Iraq, another country accused of involvement in the attacks by the media, also denied any link, stressing that it is constitutionally committed to preventing any use of its soil for attacks on its neighbors.
Kim Mok-yeon, Arirang news.
Many countries are bracing for impact as pundits say prices might spike up to 10 dollars per barrel.
Kim Mok-yeon starts us off this morning with Saudi oil attack a 'game changer' on global oil.
A spike in global oil prices seems to be inevitable in the aftermath of Saturday's drone attacks on Saudi Arabia's main oil processing plants, which had been accountable for some 5 percent of the global oil supply.
The nation's state-run oil company Saudi Aramco, has temporarily closed its facilities, which many experts expect will cause a lack of supply, leading to higher global oil prices.
Saudi Arabia's energy minister Abdulaziz bin Salman says the strikes will cut the kingdom's oil output by 5-point-7 million barrels a day.
The results are expected to deal a big blow to many countries including South Korea, Japan and China which each import around 4 million barrels of Saudi crude oil on average every day.
Global oil prices have recently been low, with Brent crude, the global benchmark closing at 60.22 U.S. dollars per barrel on Friday.
But some experts forecast the price to increase by 10 dollars per barrel when markets open on Monday.
Meanwhile, a top U.S. official said that Washington is ready to make use of its Strategic Petroleum Reserve if needed to stabilize the global energy supply.
Speaking in an interview with Fox News on Sunday, White House adviser Kellyanne Conway said that the U.S. Energy department is prepared to tap into its emergency fuel reserves to cope with the situation.
Conway also did not rule out a possible meeting between the leaders of the U.S. and Iran on the sidelines of the UN General Assembly this month, but still stressed that the attack did not help that prospect.
Washington had blamed Iran for the attacks, but Iran denied involvement, criticizing Washington for its quote "blind and futile" comments.
Iraq, another country accused of involvement in the attacks by the media, also denied any link, stressing that it is constitutionally committed to preventing any use of its soil for attacks on its neighbors.
Kim Mok-yeon, Arirang news.