Get ready for $100 oil?
U.S. sanctions have taken hundreds of thousands of barrels of Iranian and Venezuelan oil off the market.
The only reason prices haven't skyrocketed is increased U.S. and Saudi production.
Now this happened.
— Ahmed Alsalman (@AAlsalman91) September 14, 2019
Yemen's Houthi rebels have attacked Saudi Arabia's oil facilities with drones, the Houthi-run Al-Masirah news agency said Saturday.
A Yemen armed forces spokesman was quoted by the agency as saying the Houthis successfully carried out a "large-scale" operation with 10 drones targeting Saudi Aramco oil facilities in Abqaiq and Khurais.
"We promise the Saudi regime that the next operation will be wider and more painful if the blockade and aggression continues," the spokesman added.
The Saudi-led coalition battling the Houthi rebels said in a statement it's investigating the attacks and would confront "terrorist" threats to global energy security.
One of the facilities, at Abqaiq, is the company's largest oil-processing facility and the largest crude oil stabilization plant in the world, according to the oil company, Aramco.
Saudi Arabia produces approximately 10% of the total global supply of 100 million barrels per day.
People with knowledge of Saudi's oil operations told CNN that capacity at Aramco's oil facilities is "down at this stage by 5 million barrels a day," meaning 5% of the daily global oil is affected.
If the Houthis can do it once then they can do it again.
Supply loss from KSA may be as high as 150 MM barrels/month. Oil may hit $100.
— Krishnan Viswanathan (@kxviswan123) September 14, 2019
The markets have totally underestimated the danger.
This headline was from a month ago.