Oil Jumps Near $12/bbl after Aramco Oil Plants Attack, Trump Supplies Oil Market with SPR

Over the night, oil market made a huge jump after the attack on two Aramco‘s oil plants last Saturday, cutting the production of 5.7 million barrel per day from Saudi Arabia from its total 9.85 million barrel per day. The attack was believed to be from Houthi rebels, but Iran had dismissed the claimed.

Brent jumped $11.73/bbl or 19.47% to the highest of the session at $71.95/bbl while WTI also jumped $8.49/bbl or 15.47% to the highest of the session at $63.34/bbl.

Saudi Arabia is the second largest oil producer in the world, making up about 10% at 9.85 million barrel per day of the global supply while the U.S. had just recently moved up to world’s no.1 at 15%.

Khurais, one of the Suadi’s largest plant and one of the plants that was attacked, produces 1.5 million barrel per day while another plant attacked by the drones was in Abqaiq which is the largest plant in the country with the production of 7 million barrel per day.

The crown prince stated that Aramco had to shut down the production of 5.7 million barrel per day of crude oil after the attack which is more than half of the country’s oil production.

Sunday evening, President Donald Trump said he greenlighted the Strategic Petroleum Reserve to keep the markets “well-supplied.”

Meanwhile, Aramco planned to restore about a third of its crude output, or 2 million barrels by Monday.