Saturday's coordinated drone strikes on key Saudi Arabian oil facilities cut out more than 5% of global oil supply and has caused oil prices to rise over 15%, the highest in four months
Doha: Following the attack on Saudi Arabia's oil facilities that knocked out more than 5% of global oil supply, oil prices surged more than 15% to their highest level in nearly four months.
Brent crude futures jumped more than 19% to a session high of $71.95 a barrel at the market's open, Al Jazeera reported on Monday.
US crude futures surged more than 15% to a session high of $63.34 a barrel. Both benchmarks rose to their highest levels since May.
Prices were up about 12% by 22:50 GMT Sunday as gains were capped after US President Donald Trump said he authorised the release of oil from the US Strategic Petroleum Reserve (SPR) if needed in a quantity to be determined because of the attack on Saudi's facilities.
State oil giant Saudi Aramco said that Saturday's coordinated drone strikes on key Saudi Arabian oil facilities 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.
A senior US official stated that the attack on plants in the heartland of Saudi Arabia's oil industry, including the world's biggest petroleum-processing facility, came from the direction of Iran and cruise missiles may have been used.
Abhishek Kumar, head of analytics at Interfax Energy in London, told Al Jazeera that Saudi authorities have claimed to control the fires but this falls far short of extinguishing them. "The damage to facilities at Abqaiq and Khurais appears to be extensive, and it may be weeks before oil supplies are normalised," he said.
Last Updated 1:52 PM IST