Drone attacks on two critical production facilities in Saudi Arabia wiped out over 5% of the world’s oil supply in one go, eliminating the spare capacity of the entire globe.
The attacks, which targeted an oil processing facility at Abqaiq and the nearby Khurais oil field knocked out 5.7 million barrels of daily crude production, a whopping 50% of Saudi Arabia’s entire oil output.
“This incident effectively eliminates the world’s spare capacity,” said Sarah Cottle, global head of market insight at S&P Global Platts.
The attacks led at one point to oil prices spiking by 19%, the biggest leap since 1991.
Despite Houthi rebels fighting Saudi forces in Yemen taking credit, The Trump administration immediately indicated that it may be about to blame As Iran’s economy teeters on the brink of collapse under the tough sanctions regime imposed by the Trump administration, the Islamic Republic’s authoritarian leadership has spent its limited cash reserves to bolster terror groups such as Hezbollah and Hamas, as well as militant terrorists in Syria, Iraq, and Yemen. Iran has spent more than $16 billion during the past several years to fund militant terrorists across the Middle East, cash that was repatriated to the Islamic Republic under(...)