Oil Prices Surge 15% After Attack on Saudi Facilities

OIL prices surged more than 15 percent to their highest level in nearly four months at the open on Sunday after an attack on Saudi Arabia’s oil facilities.

The attack on Saturday knocked out more than 5 percent of global oil supply.

Brent crude futures jumped more than 19 percent to a session high of $71.95 a barrel at the opening, while U.S. crude futures surged more than 15 percent to a session high of $63.34 a barrel. Both benchmarks rose to the highest since May.

Prices were up about 12 percent by 6:50 p.m., as gains were capped after U.S. President Donald Trump said he authorized the release of oil from the U.S. 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 the attack 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.

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.

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