https://www.theglobeandmail.com/
Oil prices surged after a weekend attack on oil operations in Saudi Arabia significantly cut crude output and raised fears of escalating military tensions in the region.
Drone strikes caused explosions and fires at two of the kingdom’s key production and processing facilities and slashed its oil production by more than half. Yemen’s Houthi rebel group claimed responsibility for the attacks, which revealed the vulnerability of the Middle East’s largest oil producer.
State oil company Saudi Aramco said production had been cut by 5.7 million barrels a day – a volume equating to more than 5 per cent of global demand and more than all of Canada’s output. Officials said the company hoped to restore about a third of that by early this week.
U.S. President Donald Trump said he has authorized the use of the U.S. emergency oil stockpile to ensure stable supplies in wake of the attack.
“Based on the attack on Saudi Arabia, which may have an impact on oil prices, I have authorized the release of oil from the Strategic Petroleum Reserve, if needed, in a to-be-determined amount sufficient to keep the markets well-supplied,” Trump said.
For the rest of this article: https://www.theglobeandmail.com/business/industry-news/energy-and-resources/article-oil-prices-expected-to-jump-after-drone-attack-slashes-saudi-oil/