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Record Moves in Oil
Its been an extremely volatile start to the week for oil markets. Traders are reacting to the news over the weekend of drone attacks on the world’s largest oil processing site in Saudi Arabia. The strike, which hit the Aramco controlled site at Abqaiq as well as the nearby oil field in Khurais wiped out a massive 5.7 million barrels of crude.
To put this in perspective, the attack erased around 50% of Saudi Arabia’s oil output and around 5% of total global oil supply. In response, crude prices gapped higher by over 20% at the open last night, marking their largest spike higher on record.
Who was Behind the Attacks?
The Houthi rebel group from Yemen, which has been behind a spat of attacks on Saudi pipelines, claimed immediate responsibility for the attacks. However, the US has accused Iran of being responsible for the attacks with US secretary of State Mike Pompeo blaming the attacks on Tehran. Pompeo told reporters there is “no evidence the attacks came from Yeme...
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