Oil prices had a 10% shock jump on Monday oil trading. A drone attack on two vital Saudi Arabian facilities – the Abqaiq refinery and the Khurais oil field has left global supply without 5% of its capacity. Watch our oil chart analysis to understand what traders need to keep an eye on in the next volatile days.
The Abqaiq refinery is the largest in the world and global oil markets have responded with worries that it could take weeks or even months to get it back functioning to full capacity. The oil price today, rising with over 10% is a reflection of fears that this could lead to shortages and unfulfilled contracts if the conflict continues.
The Saudi drone attacks were allegedly carried out by Houthi rebels in Yemen, forces that are associated with Iran. And the latter has been accused of seizing a UAE tanker several hours ago in the Strait of Hormuz.
The U.S. reacted immediately with President Trump allowing the use of the country’s strategic oil reserves to limit the effects on industry and consumers. He was also quick to say that the country is ready to react should solid proof be provided about the identity of those responsible for the attack.
Will the global oil supply glut act as a cushion in this situation? Will crude oil price be impacted by the inventories number this Wednesday? Watch our crude oil chart analysis to get all the angles!
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