The Saturday drone attacks on key Saudi Arabia oil installations that resulted in Saudi's Aramco losing nearly 5.7 million barrels per day, has resulted in soaring oil prices across the world, spiking fears that the situation could present further strain on the already dire global economy.
According to the data shared by the Brent Crude, the international oil prices benchmark, Oil traded at $70.98 per barrel on Sunday, which represented an increase of 18% from Friday’s close of $60.15. Elsewhere, the US benchmark, West-Texas crude, reported prices $61.27 per barrel, representing a surge of 12%.
The Saudi oil plants were attacked on Saturday by unidentified drones, and although the Yemeni's Houthi rebels have claimed responsibility, key questions still remain unanswered: like where exactly the drones were launched, and how the rebels could have managed to strike these plants which seat deep in Saudi, approximately 900 Kilometers from Yemeni soil.
The affected company, Saudi Aramco is the largest oil producer in the Kingdom and the second largest in the world, producing over 9.85 million barrels per day. The attacks, therefore, mean nearly half of the kingdom's oil capacity and over 5% of the daily global oil supply has been disrupted.
The US maintains that Iran is responsible for the attacks and have threatened to retaliate accordingly.
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