Latest Saudi oil attacks could impact oil price

By Doug Mattushek - 15 September 2019Views : 580

Two attacks on key oil fields in Saudi Arabia will have a devastating effect on the oil production of the Middle Eastern nation.

Drone attacks at Aramco's Abqaiq plant and another in the Khurais oilfield has lead to widespread fires. The BBC reports that Saudi Arabia's energy minister confirmed it would reduce crude oil production by around 5.7 million barrels a day, which is about 50% of the nations total output. No casualties have been reported.

As such, Saudi stocks plummeted by 2.3% when the markets opened. There is expected to be further disruptions in the markets as the cost of the attack is tallied.

Reuters reports that the attack was carried out by low-tech drones deployed by Yemen’s Houthi group, which was confirmed by the groups’ military spokesperson. However, US Secretary of State Mike Pompeo has placed the blame squarely on Iran.

"Amind all the calls for de-escalation, Iran has now launched an unprecedented attack on the world energy supply. There is no evidence the attacks came from Yemen," he tweeted.

Iran's foreign ministry spokesman Abbas Mousavi denied the allegations.

"Such fruitless and blind accusations and remarks are incomprehensible and meaningless," read a statement.