Oil prices surge 15% after attack on Saudi facility hits global supply - Reuters:
Oil prices surged more than 15% at the open on Sunday after an attack on Saudi Arabia’s oil facilities on Saturday that knocked out more than 5% of global oil supply.
Brent crude futures jumped more than 19% to a session high of $71.95 a barrel at the opening, while U.S. crude futures surged more than 15% to a session high of $63.34 a barrel.
State oil giant Saudi Aramco said the attack cut output by 5.7 million barrels per day, at a time when Aramco is trying to ready itself for what is expected to be the world’s largest share sale.
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Sunday 15 September 2019
#Saudi Aramco Drone Attack Latest: Race to Restore Oil Output - Bloomberg
Saudi Aramco Drone Attack Latest: Race to Restore Oil Output - Bloomberg:
Saudi Arabia will probably restore almost half the oil production lost after this weekend’s devastating drone strike as early as tomorrow, though a full resumption from the world’s biggest crude exporter may take weeks.
That’s according to industry consultant Energy Aspects in a note sent to clients on Sunday. Saudi Arabia will meet obligations to suppliers by running down reserves as state oil company Saudi Aramco works toward bringing back all the 5.7 million barrels a day lost after the giant Abqaiq processing plan was set ablaze.
Although supply into the global market won’t be disrupted in the short term, prices are likely to jump when they open for the week as traders digest the attack. Claimed by rebels in Yemen, but blamed on Iran by the U.S., the assault shows the vulnerability of the very heart of the Saudi economy and how Crown Prince Mohammed bin Salman’s more aggressive foreign policy could threaten his push for economic modernization.
Saudi Arabia will probably restore almost half the oil production lost after this weekend’s devastating drone strike as early as tomorrow, though a full resumption from the world’s biggest crude exporter may take weeks.
That’s according to industry consultant Energy Aspects in a note sent to clients on Sunday. Saudi Arabia will meet obligations to suppliers by running down reserves as state oil company Saudi Aramco works toward bringing back all the 5.7 million barrels a day lost after the giant Abqaiq processing plan was set ablaze.
Although supply into the global market won’t be disrupted in the short term, prices are likely to jump when they open for the week as traders digest the attack. Claimed by rebels in Yemen, but blamed on Iran by the U.S., the assault shows the vulnerability of the very heart of the Saudi economy and how Crown Prince Mohammed bin Salman’s more aggressive foreign policy could threaten his push for economic modernization.
S&P Global Platts sees #Saudi oil strikes driving up risk premium in crude market - Reuters
S&P Global Platts sees Saudi oil strikes driving up risk premium in crude market - Reuters:
Attacks on Saudi oil plants have boosted concerns about supply security in the Middle East and should raise the risk premium in the global crude market, shifting focus from a gloomy economic backdrop, S&P Global Platts said on Sunday.
“The sudden change in geopolitical risk warrants not only an elimination of the $5-10 a barrel discount on bearish sentiment, but adds a potential $5-10 a barrel premium to account for now-undeniably high Middle Eastern dangers to supply and the sudden elimination of spare capacity,” it said in a note.
“As such prices are likely to break out of the current $55-65 a barrel options range, to test the high $70s as currently supported by fundamentals.”
Attacks on Saudi oil plants have boosted concerns about supply security in the Middle East and should raise the risk premium in the global crude market, shifting focus from a gloomy economic backdrop, S&P Global Platts said on Sunday.
“The sudden change in geopolitical risk warrants not only an elimination of the $5-10 a barrel discount on bearish sentiment, but adds a potential $5-10 a barrel premium to account for now-undeniably high Middle Eastern dangers to supply and the sudden elimination of spare capacity,” it said in a note.
“As such prices are likely to break out of the current $55-65 a barrel options range, to test the high $70s as currently supported by fundamentals.”
Saudis ill-prepared to handle oil attack disruption | Financial Times
Saudis ill-prepared to handle oil attack disruption | Financial Times:
With new leadership in both its oil company and the energy ministry, Saudi Arabia is ill-equipped to deal with the disruption that will follow Saturday’s attack by rebels in Yemen on the facilities at Abqaiq which handle the bulk of Saudi oil production and exports.
The sacking of Khalid al-Falih as Saudi Arabia’s energy minister and Saudi Aramco chairman is a disastrous mistake for the company and a signal of the erosion of the country’s role as a source of stability in the Middle East. It came just before the attack exposed the continuing vulnerability of the oil market to events in the region.
Mr Falih has long been recognised as an exceptional individual. Under his leadership, Aramco confirmed its position as the most efficient producer of the Opec state oil companies. As energy minister since 2016, he edged Saudi Arabia into a pragmatic role in the oil market, steering agreements on production quotas despite the political complexities inherent in a cartel that includes both Iran and Iraq.
With new leadership in both its oil company and the energy ministry, Saudi Arabia is ill-equipped to deal with the disruption that will follow Saturday’s attack by rebels in Yemen on the facilities at Abqaiq which handle the bulk of Saudi oil production and exports.
The sacking of Khalid al-Falih as Saudi Arabia’s energy minister and Saudi Aramco chairman is a disastrous mistake for the company and a signal of the erosion of the country’s role as a source of stability in the Middle East. It came just before the attack exposed the continuing vulnerability of the oil market to events in the region.
Mr Falih has long been recognised as an exceptional individual. Under his leadership, Aramco confirmed its position as the most efficient producer of the Opec state oil companies. As energy minister since 2016, he edged Saudi Arabia into a pragmatic role in the oil market, steering agreements on production quotas despite the political complexities inherent in a cartel that includes both Iran and Iraq.
#SaudiArabia faces weeks without full oil production after attack | Financial Times
Saudi Arabia faces weeks without full oil production after attack | Financial Times:
Saudi Arabia faces weeks without full crude and gas production capacity after Saturday’s attack on the world’s most important oil facility.
While some officials in the kingdom have sought to reassure oil markets that production will come back quickly, people briefed on the matter say it could take far longer restore output to its maximum level.
“It will take weeks to ramp up and bring the complex to maximum capacity,” said one person close to the energy ministry.
Saudi Arabia faces weeks without full crude and gas production capacity after Saturday’s attack on the world’s most important oil facility.
While some officials in the kingdom have sought to reassure oil markets that production will come back quickly, people briefed on the matter say it could take far longer restore output to its maximum level.
“It will take weeks to ramp up and bring the complex to maximum capacity,” said one person close to the energy ministry.
#Saudi Aramco and SPR: What Is the Strategic Petroleum Reserve? - Bloomberg
Saudi Aramco and SPR: What Is the Strategic Petroleum Reserve? - Bloomberg:
The Trump administration is standing by to deploy the nation’s emergency oil reserves and help stabilize markets if needed after a series of drone attacks in Saudi Arabia knocked out half of the kingdom’s crude output, or about 5% of world supplies.
Energy Secretary Rick Perry is ready to draw down stocks from the 630 million-barrel cache “to offset any disruptions to oil markets as a result of this act of aggression,” his spokeswoman, Shaylyn Hynes, said in a statement late Saturday. Perry also ordered officials to work with the International Energy Agency on possible options for coordinated action.
Whether the Strategic Petroleum Reserve, the world’s largest supply of emergency crude, gets used may depend on how quickly the Saudis can resume production from the world’s biggest crude-processing facility.
The Trump administration is standing by to deploy the nation’s emergency oil reserves and help stabilize markets if needed after a series of drone attacks in Saudi Arabia knocked out half of the kingdom’s crude output, or about 5% of world supplies.
Energy Secretary Rick Perry is ready to draw down stocks from the 630 million-barrel cache “to offset any disruptions to oil markets as a result of this act of aggression,” his spokeswoman, Shaylyn Hynes, said in a statement late Saturday. Perry also ordered officials to work with the International Energy Agency on possible options for coordinated action.
Whether the Strategic Petroleum Reserve, the world’s largest supply of emergency crude, gets used may depend on how quickly the Saudis can resume production from the world’s biggest crude-processing facility.
#Saudi Stocks Drop as Tensions Surge After Aramco Drone Attacks - Bloomberg
Saudi Stocks Drop as Tensions Surge After Aramco Drone Attacks - Bloomberg:
Saudi Arabian stocks declined the most in the Middle East after drone strikes highlighted the vulnerability of the kingdom’s oil facilities to terror attacks.
The Tadawul All Share Index fell as much as 3.1%, led by Al Rajhi Bank and Saudi Basic Industries Corp.. The drop erased this year’s gain and lowered the gauge’s valuation to the weakest since March, before the kingdom’s stocks were included in MSCI Inc.’s emerging-market gauge. Equities in the United Arab Emirates, Qatar, Kuwait and Bahrain retreated at least 0.3%.
This is a “very tense situation,” elevating risk in the region “to unprecedented levels,” said Mohammed Ali Yasin, the chief strategy officer at Al Dhabi Capital in Abu Dhabi.
Saudi Arabian stocks declined the most in the Middle East after drone strikes highlighted the vulnerability of the kingdom’s oil facilities to terror attacks.
The Tadawul All Share Index fell as much as 3.1%, led by Al Rajhi Bank and Saudi Basic Industries Corp.. The drop erased this year’s gain and lowered the gauge’s valuation to the weakest since March, before the kingdom’s stocks were included in MSCI Inc.’s emerging-market gauge. Equities in the United Arab Emirates, Qatar, Kuwait and Bahrain retreated at least 0.3%.
This is a “very tense situation,” elevating risk in the region “to unprecedented levels,” said Mohammed Ali Yasin, the chief strategy officer at Al Dhabi Capital in Abu Dhabi.
Analyst View: #Saudi attacks raise specter of oil at $100/barrel - Reuters
Analyst View: Saudi attacks raise specter of oil at $100/barrel - Reuters:
The oil market will rally by $5-10 per barrel when it opens on Monday and may spike to as high as $100 per barrel if Saudi Arabia fails to quickly resume oil supply lost after attacks over the weekend, traders and analysts said.
Attacks on two plants at the heart of the kingdom’s oil industry on Saturday knocked out more than half of Saudi crude output, or 5% of global supply.
Industry sources have said it may take weeks to bring production fully online.
The oil market will rally by $5-10 per barrel when it opens on Monday and may spike to as high as $100 per barrel if Saudi Arabia fails to quickly resume oil supply lost after attacks over the weekend, traders and analysts said.
Attacks on two plants at the heart of the kingdom’s oil industry on Saturday knocked out more than half of Saudi crude output, or 5% of global supply.
Industry sources have said it may take weeks to bring production fully online.
MIDEAST STOCKS- #Saudi leads Gulf lower after attacks on oil plants - Reuters
MIDEAST STOCKS-Saudi leads Gulf lower after attacks on oil plants - Reuters:
Saudi Arabian stocks dropped on Sunday with banking and
petrochemical shares taking the biggest hit after attacks on two key Saudi oil
plants a day earlier knocked out more than half of Saudi crude output.
The drone attacks, which were claimed by Yemen's Houthi group, are likely to
push up the oil price by $5-10 per barrel when it opens on Monday. Crude may
shoot up to $100 per barrel if Saudi Arabia fails to return to its full oil
supply capacity after Saturday's attacks on Aramco oil plants.
Saudi's index closed 1.1% lower to fall for a fourth straight
session, with Al Rajhi Bank down 1.2% and petrochemical maker Saudi
Basic Industries (SABIC) lower 2.6%.
SABIC and other petrochemicals firms announced significant reductions in
feedstock supplies.
Saudi Arabian stocks dropped on Sunday with banking and
petrochemical shares taking the biggest hit after attacks on two key Saudi oil
plants a day earlier knocked out more than half of Saudi crude output.
The drone attacks, which were claimed by Yemen's Houthi group, are likely to
push up the oil price by $5-10 per barrel when it opens on Monday. Crude may
shoot up to $100 per barrel if Saudi Arabia fails to return to its full oil
supply capacity after Saturday's attacks on Aramco oil plants.
Saudi's index closed 1.1% lower to fall for a fourth straight
session, with Al Rajhi Bank down 1.2% and petrochemical maker Saudi
Basic Industries (SABIC) lower 2.6%.
SABIC and other petrochemicals firms announced significant reductions in
feedstock supplies.
#SaudiArabia Drone Attack Is a Strike at Oil’s Future - Bloomberg
Saudi Arabia Drone Attack Is a Strike at Oil’s Future - Bloomberg:
We’re about to find out just how laid back the oil market really is. It has shrugged off sanctions on Iran, exploding tankers and drones getting shot down over the Strait of Hormuz. But this weekend’s strike against Saudi Arabia’s Abqaiq processing facility – perhaps the single most important piece of oil infrastructure on the planet – is of a different order.
Saudi Arabia said the attack affected 5.7 million barrels a day of output, or roughly half their production. The more important issue is how long any disruption lasts. It is unclear whether the strike involved drone-fired weapons or missiles or a combination of them. The Abqaiq facility’s sheer size, covering more than a square mile, makes it hard to imagine that anything but an overwhelming or extraordinarily sophisticated attack could keep it offline for long. But we just don’t know at present. That alone should add some risk premium to oil prices.
The prevailing mood in the markets before Saturday was one of uncertainty weighing on prices, largely related to the swings of the trade war and – with the sudden absence of John Bolton from President Donald Trump’s ear – whether sanctioned Iranian barrels would find their w
We’re about to find out just how laid back the oil market really is. It has shrugged off sanctions on Iran, exploding tankers and drones getting shot down over the Strait of Hormuz. But this weekend’s strike against Saudi Arabia’s Abqaiq processing facility – perhaps the single most important piece of oil infrastructure on the planet – is of a different order.
Saudi Arabia said the attack affected 5.7 million barrels a day of output, or roughly half their production. The more important issue is how long any disruption lasts. It is unclear whether the strike involved drone-fired weapons or missiles or a combination of them. The Abqaiq facility’s sheer size, covering more than a square mile, makes it hard to imagine that anything but an overwhelming or extraordinarily sophisticated attack could keep it offline for long. But we just don’t know at present. That alone should add some risk premium to oil prices.
The prevailing mood in the markets before Saturday was one of uncertainty weighing on prices, largely related to the swings of the trade war and – with the sudden absence of John Bolton from President Donald Trump’s ear – whether sanctioned Iranian barrels would find their w
#Saudi Stocks Tumble as Tensions Surge After Aramco Drone Attacks - Bloomberg
Saudi Stocks Tumble as Tensions Surge After Aramco Drone Attacks - Bloomberg:
Saudi Arabian stocks sank after drone strikes highlighted the vulnerability of the kingdom’s oil facilities to terror attacks.
The Tadawul All Share Index fell as much as 3.1%, led by Al Rajhi Bank and Saudi Basic Industries Corp.. The drop erased this year’s gain and lowered the gauge’s valuation to the weakest since March, before the kingdom’s stocks were included in MSCI Inc.’s emerging-market gauge. Equities in the United Arab Emirates, Qatar, Kuwait and Bahrain retreated at least 0.4%.
This is a “very tense situation,” elevating risk in the region “to unprecedented levels,” said Mohammed Ali Yasin, the chief strategy officer at Al Dhabi Capital in Abu Dhabi.
Saudi Arabian stocks sank after drone strikes highlighted the vulnerability of the kingdom’s oil facilities to terror attacks.
The Tadawul All Share Index fell as much as 3.1%, led by Al Rajhi Bank and Saudi Basic Industries Corp.. The drop erased this year’s gain and lowered the gauge’s valuation to the weakest since March, before the kingdom’s stocks were included in MSCI Inc.’s emerging-market gauge. Equities in the United Arab Emirates, Qatar, Kuwait and Bahrain retreated at least 0.4%.
This is a “very tense situation,” elevating risk in the region “to unprecedented levels,” said Mohammed Ali Yasin, the chief strategy officer at Al Dhabi Capital in Abu Dhabi.
Attacks on #Saudi Oil Risk Lowering Aramco IPO Valuation - Bloomberg
Attacks on Saudi Oil Risk Lowering Aramco IPO Valuation - Bloomberg:
The weekend drone attacks on Saudi Aramco’s oil facilities came just as the company prepares to meet analysts for a potential initial public offering. The incident, which has caused Saudi Arabia to cut its oil output in half, may affect Aramco’s valuation but is unlikely to derail the milestone offering, analysts and investors said.
The giant oil producer has been speeding up preparations for a share sale that could happen as soon as November in Riyadh. Dozens of bankers from Citigroup Inc. to JPMorgan Chase & Co. met in Dubai last week to work on the deal, with analyst presentations initially scheduled for next week, people familiar with the matter have said.
“Crown Prince Mohammed bin Salman will push the company to demonstrate that it can effectively tackle terrorism or war challenges,” analysts led by Ayham Kamel, head of Middle East and North Africa research at the Eurasia Group, said in a report. “The attacks could complicate Aramco’s IPO plans.”
The weekend drone attacks on Saudi Aramco’s oil facilities came just as the company prepares to meet analysts for a potential initial public offering. The incident, which has caused Saudi Arabia to cut its oil output in half, may affect Aramco’s valuation but is unlikely to derail the milestone offering, analysts and investors said.
The giant oil producer has been speeding up preparations for a share sale that could happen as soon as November in Riyadh. Dozens of bankers from Citigroup Inc. to JPMorgan Chase & Co. met in Dubai last week to work on the deal, with analyst presentations initially scheduled for next week, people familiar with the matter have said.
“Crown Prince Mohammed bin Salman will push the company to demonstrate that it can effectively tackle terrorism or war challenges,” analysts led by Ayham Kamel, head of Middle East and North Africa research at the Eurasia Group, said in a report. “The attacks could complicate Aramco’s IPO plans.”
ADX distributes billions in cash dividends to investors | ZAWYA MENA Edition
ADX distributes billions in cash dividends to investors | ZAWYA MENA Edition:
Abu Dhabi Securities Exchange, ADX, announced on Saturday the distribution of over AED25 billion in cash dividends to 572,774 eligible investors on behalf of its listed companies. In comparison to the 2018 dividends, the 6.95 percent increase demonstrates the attractiveness of the investment environment in the Emirates and especially in Abu Dhabi.
According to a statement released by the exchange, 398,220 UAE investors received their profits compared to 155,589 investors from other GCC nations, and 18,965 foreign investors, while cash dividends were distributed to 7442 institutional investors.
Commenting on the announcement, Khalifa Salem Al Mansouri, Acting Chief Executive of ADX, said, "The increase in the size of cash dividends is a clear sign of how well ADX listed companies are performing. It also shows the attractiveness of our investment environment which is served by a supportive and efficient dual economic and legislative structure in the UAE." The banking sector topped the list of the most active sectors in ADX with regards to cash dividend distribution with 52 percent of the total value of around AED13.1 billion, followed by the telecommunication sector with 28 percent
Abu Dhabi Securities Exchange, ADX, announced on Saturday the distribution of over AED25 billion in cash dividends to 572,774 eligible investors on behalf of its listed companies. In comparison to the 2018 dividends, the 6.95 percent increase demonstrates the attractiveness of the investment environment in the Emirates and especially in Abu Dhabi.
According to a statement released by the exchange, 398,220 UAE investors received their profits compared to 155,589 investors from other GCC nations, and 18,965 foreign investors, while cash dividends were distributed to 7442 institutional investors.
Commenting on the announcement, Khalifa Salem Al Mansouri, Acting Chief Executive of ADX, said, "The increase in the size of cash dividends is a clear sign of how well ADX listed companies are performing. It also shows the attractiveness of our investment environment which is served by a supportive and efficient dual economic and legislative structure in the UAE." The banking sector topped the list of the most active sectors in ADX with regards to cash dividend distribution with 52 percent of the total value of around AED13.1 billion, followed by the telecommunication sector with 28 percent
#UAE regulator not optimistic on Boeing 737 MAX return this year - Reuters
UAE regulator not optimistic on Boeing 737 MAX return this year - Reuters:
The head of the United Arab Emirates’ General Civil Aviation Authority said on Sunday he was not optimistic that the Boeing (BA.N) 737 MAX would return to operations this year and that the first quarter of 2020 was more likely.
The 737 MAX has been grounded since March while Boeing updates flight control software at the center of two fatal crashes in Indonesia and Ethiopia that together killed 346 people within a span of five months.
Boeing Co is targeting regulator approval for the fixes in October, though the U.S. Federal Aviation Administration has said it does not have a firm time for the aircraft to be flying again.
The head of the United Arab Emirates’ General Civil Aviation Authority said on Sunday he was not optimistic that the Boeing (BA.N) 737 MAX would return to operations this year and that the first quarter of 2020 was more likely.
The 737 MAX has been grounded since March while Boeing updates flight control software at the center of two fatal crashes in Indonesia and Ethiopia that together killed 346 people within a span of five months.
Boeing Co is targeting regulator approval for the fixes in October, though the U.S. Federal Aviation Administration has said it does not have a firm time for the aircraft to be flying again.
Attacks on #Saudi facilities threaten spare oil capacity, price hikes - Reuters
Attacks on Saudi facilities threaten spare oil capacity, price hikes - Reuters:
Saturday’s attacks on key Saudi Arabia processing plants will test the world’s ability to handle a supply crisis as it faces the temporary loss of more than 5% of global supply from the world’s biggest crude exporter.
The Iranian-backed Houthis group in Yemen claimed responsibility for attacks that shut two plants at the Abqaiq facility, the heart of the Saudi oil industry, which will cut the kingdom’s production by about 5.7 million barrels per day (bpd), more than half of the kingdom’s output, according to a statement from state-run Saudi Aramco.
Crude prices could spike by several dollars per barrel when markets open Sunday night as a prolonged outage could prompt the United States and other countries to release crude from their strategic petroleum reserves to boost commercial stocks globally. The U.S. Energy Department said on Saturday it is ready to release oil from its strategic reserve if needed.
Saturday’s attacks on key Saudi Arabia processing plants will test the world’s ability to handle a supply crisis as it faces the temporary loss of more than 5% of global supply from the world’s biggest crude exporter.
The Iranian-backed Houthis group in Yemen claimed responsibility for attacks that shut two plants at the Abqaiq facility, the heart of the Saudi oil industry, which will cut the kingdom’s production by about 5.7 million barrels per day (bpd), more than half of the kingdom’s output, according to a statement from state-run Saudi Aramco.
Crude prices could spike by several dollars per barrel when markets open Sunday night as a prolonged outage could prompt the United States and other countries to release crude from their strategic petroleum reserves to boost commercial stocks globally. The U.S. Energy Department said on Saturday it is ready to release oil from its strategic reserve if needed.
#Saudi's full oil supply could take weeks to resume: source - Reuters
Saudi's full oil supply could take weeks to resume: source - Reuters:
Saudi Arabia’s return to its full oil supply capacity after Saturday’s attacks on Aramco oil plants could take “weeks not days”, a source close to the matter told Reuters on Sunday.
The attacks in Abqaiq and Khurais knocked down some 5.7 million barrels per day (bpd) of the kingdom’s oil production and Saudi officials have not given a timeline for restoring full supply.
Saudi Arabia’s return to its full oil supply capacity after Saturday’s attacks on Aramco oil plants could take “weeks not days”, a source close to the matter told Reuters on Sunday.
The attacks in Abqaiq and Khurais knocked down some 5.7 million barrels per day (bpd) of the kingdom’s oil production and Saudi officials have not given a timeline for restoring full supply.
MIDEAST STOCKS- #Saudi stocks tumble after oil plant attacks - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi stocks tumble after oil plant attacks - Agricultural Commodities - Reuters:
Saudi Arabian stocks dropped sharply in early trade on Sunday after attacks on the kingdom’s two key oil plants on Saturday halted more than half of Saudi output.
Other major Gulf markets also traded down.
Attacks were claimed by the Iran-aligned Houthi group, however U.S. Secretary of State Mike Pompeo accused Iran of leading the attacks and ruled out Yemeni involvement.
The attack knocked out more than half the kingdom’s output and over 5% of global oil supply, in a move expected to send oil prices soaring and increase tensions in the Middle East.
Saudi Arabian stocks dropped sharply in early trade on Sunday after attacks on the kingdom’s two key oil plants on Saturday halted more than half of Saudi output.
Other major Gulf markets also traded down.
Attacks were claimed by the Iran-aligned Houthi group, however U.S. Secretary of State Mike Pompeo accused Iran of leading the attacks and ruled out Yemeni involvement.
The attack knocked out more than half the kingdom’s output and over 5% of global oil supply, in a move expected to send oil prices soaring and increase tensions in the Middle East.