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Oil prices rise after Saudi facilities attacked
September 16th, 2019 at 1:06 pm
Oil prices rise after Saudi facilities attacked

International desk – Oil prices have gone up in the global market after Saudi Arabian facilities were attacked, media reports said on Monday.

The prices went up as global supply reduced by 5 per cent following the attacks claimed by Houthi rebels in Yemen on two oil facilities in the Kingdom.

BBC reported that Brent crude rose to 10 per cent to 66.28 US dollars per barrel. The West Texas Intermediate jumped 8.9 per cent to 59.75 UD dollars in Asian trading.  

The United States suspects that the drone strikes were carried out by Iran, which outright rejected by Tehran, as is says Yemeni rebels have not such power to carry out attack of such big scale.

Oil rig

One of the world’s largest petroleum processing facilities was among the targets hit by the attack sparking fears of increased risk to energy supplies in the region.

The broadcaster said that it could take weeks before the facilities are fully back on line. State oil giant Saudi Aramco said the attacks cut output by 5.7 million barrels per day.

Jeffrey Halley, senior market analyst at Oanda told BBC that the price spike across oil markets was a reaction to the “political and geopolitical implications” of the attacks.

Tehran was blamed by US Secretary of State Mike Pompeo for the attacks.

US President Donald Trump in a tweet said the US knew who the culprit was and was “locked and loaded” but waiting to hear from the Saudis about how they wanted to proceed.

Iranian foreign ministry spokesman, Seyyed Abbas Mousavi, on Saturday rejected the US accusation that Iran was behind it.

“Such blind accusations and inappropriate comments in a diplomatic context are incomprehensible and meaningless,” he said.

Hostility needs a certain degree of credibility and reasonable frameworks, he said adding that the US officials have also violated these basic principles, according to CNN.