Oil prices spike after Saudi Aramco facilities suffer drone attack

Following the attack on Saudi Aramco pipeline, oil prices have jumped. Essentially, oil Price recently fell and closed at $70.83p/b on Monday night. However, as at the time of filing this report, the oil price has jumped to $71.35p/b.

Recall that the facilities of Saudi Aramco suffered setback early Tuesday morning after explosive-laden drones attacked two pumping stations belonging to the state-owned oil company.

The attack on the world’s largest oil exporter’s facilities happened just a few days after the United States deployed bombers and an assault ship to bolster an aircraft carrier in the region.

In essence, the attack may further ratchet up Gulf tensions after the earlier sabotage of several tankers.

Saudi Arabia’s State news agency reported that Saudi Arabian Energy Minister, Khalid al-Falih described the attack on the company as an act of terrorism.

Meanwhile, the Saudi Aramco will temporarily shut down its pipeline to evaluate its condition, adding that oil production and exports had not been interrupted.

On Monday, Saudi Arabia revealed that two of its oil tankers were attacked by saboteurs near the United Arab Emirates (UAE). Reuters further reported that UAE announced that a total of four vessels were attacked off its coast at the port of Fujairah.

Meanwhile, the co-founder of TankerTrackers.com, Samir Madani, stated in in a tweet that there were three Saudi tankers docked at Fujairah: one empty after returning from China, another one returning from the Saudi port of Yanbu loaded, and a small petrochemicals tanker.

In the meantime, the pipeline attack has been claimed by Yemenite Houthi militias, which are supported by Iran. Until now, no specific party has claimed the attacks on 4 vessels offshore Fujairah.