Oil prices spike after Saudi attack disrupts global supply
- 5 years ago
Global oil prices rose dramatically on Sunday in the aftermath of the attacks on two major oil plants in Saudi Arabia over the weekend.
Many countries are bracing for impact, while U.S. President Donald Trump says Washington is ready to tap into its emergency fuel reserves to stabilize supplies.
Kim Mok-yeon starts us off this morning with Saudi oil attack a 'game changer' on global oil.
Oil prices soared at least 10 percent when markets reopened after Saturday's drone attacks on Saudi Arabia's main oil processing plants, which had supplied some 5 percent of the world's oil.
On Sunday, global oil prices surged rapidly, with Brent crude trading at more than 70 U.S. dollars per barrel on oil futures markets, and the West Texas intermediate crude opening at 61 dollars, both up more than 10 percent from Friday's close.
The surge came as Saudi Arabia's state-run oil company Saudi Aramco, has temporarily closed its facilities, which many experts predict 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.
Many countries are bracing for impact, especially South Korea, Japan and China who all import large quantities of oil from Saudi Arabia.
As part of efforts to cope with the situation, U.S. President Trump said that he has authorized the release of oil from the Strategic Petroleum Reserve.
Taking to Twitter on Sunday, Trump said that Washington is prepared to tap into its emergency fuel reserves to stabilize global energy supplies, but added that the amount is yet to be determined.
Right after the attacks on Saturday, Washington blamed Iran for the drone strikes, but Iran denied any 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, while U.S. President Donald Trump says Washington is ready to tap into its emergency fuel reserves to stabilize supplies.
Kim Mok-yeon starts us off this morning with Saudi oil attack a 'game changer' on global oil.
Oil prices soared at least 10 percent when markets reopened after Saturday's drone attacks on Saudi Arabia's main oil processing plants, which had supplied some 5 percent of the world's oil.
On Sunday, global oil prices surged rapidly, with Brent crude trading at more than 70 U.S. dollars per barrel on oil futures markets, and the West Texas intermediate crude opening at 61 dollars, both up more than 10 percent from Friday's close.
The surge came as Saudi Arabia's state-run oil company Saudi Aramco, has temporarily closed its facilities, which many experts predict 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.
Many countries are bracing for impact, especially South Korea, Japan and China who all import large quantities of oil from Saudi Arabia.
As part of efforts to cope with the situation, U.S. President Trump said that he has authorized the release of oil from the Strategic Petroleum Reserve.
Taking to Twitter on Sunday, Trump said that Washington is prepared to tap into its emergency fuel reserves to stabilize global energy supplies, but added that the amount is yet to be determined.
Right after the attacks on Saturday, Washington blamed Iran for the drone strikes, but Iran denied any 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.