Saudi Aramco attacks snapshot at 0800 GMT
- Country:
- Saudi Arabia
Two major facilities at the heart of Saudi Arabia's oil industry were attacked on Saturday, shutting down more than 5% of global supply. * Yemen's Iran-aligned Houthi group, which is battling a Saudi-led coalition in Yemen, claimed responsibility, saying it used drones.
U.S. Secretary of State Mike Pompeo ruled out Yemeni involvement and accused Iran of leading the attacks on facilities run by state-owned Saudi Aramco. U.S. President Donald Trump said the United States, which has been embroiled in a row with Iran over its nuclear ambitions, was "locked and loaded" for a potential response.
An Iranian Revolutionary Guards commander said U.S. bases and aircraft carriers were within the range of Iranian missiles after Washington blamed Iran for the attacks. Sunni Muslim Saudi Arabia has previously accused Shi'ite Muslim Iran, which lies across the Gulf, for attacks on oil-pumping stations and the Shaybah oilfield, which Tehran denies. It has not blamed any party for Saturday's strike.
The attack, which knocked out about 5.7 million barrels per day (BPD) of Saudi output, struck Saudi oil-processing facilities at Abqaiq and Khurais. Abqaiq, in eastern Saudi Arabia, processes crude from the giant Ghawar oil field for export to the Gulf terminals Ras Tanura and Juaymah and to Red Sea terminals.
Oil prices soared on Monday, with Brent crude posting its biggest intra-day percentage gain since the Gulf War in 1991. Analysts said benchmark Brent, now trading at about $66 a barrel, could hit $100 if Riyadh fails to quickly bring back supply.
The attack, which knocked out more than half of Saudi Arabia's output, also constrained its ability to use more than 2 million BPD of spare oil capacity held for emergencies to compensate for any major global supply disruption. Saudi Arabia's return to full oil supply capacity could take "weeks not days", a source close to the matter told Reuters on Sunday.
Saudi Aramco has been seeking to prepare for what is expected to be the world's largest share sale. Saudi Arabia is the world's biggest exporter, shipping more than 7 million barrels of oil to global destinations every day, and for years has served as the supplier of last resort to markets.
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