Crude oil prices jumped on global markets after a wave of weekend drone attacks instantly erased half of Saudi Arabia’s oil production from two of the major oil facilities.
According to details, Brent crude, the global gauge of oil prices, was 10.4% higher at $65.56 a barrel in early European trading on Monday, after initially surging by as much as 19.5% in response to the disruption. U.S. oil futures were up 9.2% at $59.89 a barrel.
Drone strikes attacked a oil processing facility at Abqaiq and the nearby Khurais oil field on Saturday, knocking out 5.7 million barrels of daily crude production, or 50% of the kingdom’s oil output. That’s more than 5% of global daily oil production.
According to details, First drone hit Abqaiq, site of Aramco’s largest oil processing plant, while a second drone attack started fires in the Khurais oilfield.
Security teams have controlled the fire, which caused massive loss.
Drone attacks have been verified by the interior ministry of Saudi Arabia.
Saudi officials have not yet commented on who could be behind the attacks.
Aramco says Abqaiq plant is the world’s largest “crude oil stabilization plant”. Abqaiq plant was also targeted by Al-Qaeida in 2006.