By Adedapo Adesanya
Following an attack on Saudi Arabia’s largest oil processing plant prices on Saturday which shut down over 5 percent of global supply, crude oil rose higher on Monday morning.
As at the time of this report, the Brent crude, the international oil benchmark, was trading at $65. 41 per barrel, an increase of $5.19 or 8.62 percent, while the US West Texas Intermediate (WTI) crude oil was trading high at $59.34 per barrel an increase of $4.49 per barrel or 8.19 percent.
Yemen’s Iran-backed Houthi rebels has claimed responsibility for the attack on the Saudi Aramco facility and the development has heightened tensions in the Middle-East.
This has brought a halt to the production of 5.7 million barrels of crude a day, more than half of Saudi Arabia’s global daily exports and more than 5 percent of the world’s daily crude oil production.
This rise and its longer-term global impact will depend on how long production is disrupted and the attack’s future implications.
According to the US Secretary of State, Mr Mike Pompeo, “The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression.”
The United States has accused Iran of being behind the attack and the weekend’s attack on its oil infrastructure could lead Saudi Arabia to launch a military strike on Iran in retaliation.
Dipo Olowookere