Wednesday, October, 28, 2020 06:43:58
Trump orders U.S. petroleum reserve to release oil after Saudi attacks
- Aramco was forced to reduce its production by 5.7 million barrels each day or almost 50% after a number of drone attacks struck the core of the country’s oil production.
- Crude futures saw a sharp jump Sunday after the attack. U.S. West Texas Intermediate increased by 11.6% or $6.45, to $61.29 each barrel. Brent popped by 13% or $7.79 to $68.04.
U.S. President Donald Trump reportedly approved the oil release from the strategic petroleum reserve of the U.S. due to attacks on primary production facilities in the Kingdom of Saudi Arabia reduced the crude production of the country to half.
Aramco, Saudi’s national oil company, was forced to reduce its production by 5.7 million barrels per day or around 50% after a number of drone attacks struck the core of the country’s oil production. The largest oil processing facility in the world and Saudi Arabia’s second-biggest oil field were also hit in the drone attacks.
Reports cite, earlier in August, Saudi Arabia generated 9.85 million barrels per day. About 600,000 barrels are imported to the U.S. and four million barrels are imported by Asia. China is the largest importer of oil in Asia at 1.3 million oil barrels followed by Japan which imports 1.2 million barrels.
Government of Saudi Arabia has not yet given any official statement about when oil production will get back to normal. However, reports cite that the country would restore almost a third of the oil output loss on Monday.
Crude futures saw a sharp jump on Sunday after the attack. U.S. West Texas Intermediate increased by 11.6% or $6.45, to $61.29 each barrel. Brent popped by 13% or $7.79 to $68.04.
Yemen’s Houthi rebels claimed the responsibility of drone attacks, however, the U.S. held Iran responsible for the attack.
The U.S. Secretary of State, Mike Pompeo blamed Tehran, capital of Iran, for launching an unexpected attack on the energy supply of the world. Pompeo claimed that there was no evidence to blame Yemen for the attacks.
Source credit: https://www.cnbc.com/2019/09/15/trump-says-he-has-authorized-release-of-oil-from-strategic-petroleum-reserve-if-needed-after-saudi-attacks.html