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It’s Official: 5.7 Million Barrels Of Saudi Oil Production Shut After Aramco Drone Attacks

"Oil could easily trade higher by $10 or more".

SPA has released statements from Saudi Arabia’s (new) energy minister and from Saudi Aramco, relating to the drone attacks against Abqaiq and Khurais.

5.7 million barrels of production – around 50% of the country’s output – was affected, in line (or slightly above) initial estimates.

“The next big question is where the drones came from”, Rapidan Energy’s Bob McNally told CNBC. “If Iraq, then oil will go up more than a few dollars and if Abqaiq kills talks of easing sanctions and the discussion turns to retaliation and escalation, I think oil could easily trade higher by $10 or more”, he added.

Read more: Pompeo Says Aramco Drone Attacks Didn’t Originate In Yemen, Graham Calls For Strikes On Iran’s Oil Refineries

Full statement attributed to Energy Minister Prince Abdulaziz Bin Salman

September 15, 1441, at 3:31 am and 3:42 am, Several explosions occurred as a result of terrorist attacks at the Saudi Aramco plants in Khurais and Abqaiq, resulting in controlled fires. 
His Highness pointed out that this terrorist act resulted in the temporary suspension of production operations at Abqaiq and Khurais plants. According to preliminary estimates, these explosions led to the interruption of a quantity of crude oil supplies estimated at 5.7 million barrels, or about 50% of the company’s production. Part of the decline will be compensated for its customers through stocks.

The Minister explained that these explosions have also led to the cessation of the production of associated gas estimated at (2) billion cubic feet per day, used to produce 700 thousand barrels of natural gas liquids, which will reduce the supply of ethane and natural gas liquids by up to About (50%).

As for the local supplies, His Highness stressed that this attack has not resulted in any impact on the supply of electricity and water from fuel, or on the supply of the local market of fuel, nor resulted in any injuries among workers at these sites so far, and the company is still in the process of development. Assess the implications.

He also explained that the company is currently working to recover the lost quantities, and will provide within the next 48 hours updated information.

His Highness the Minister of Energy that this terrorist attack and sabotage is an extension of recent attacks that targeted oil and civil facilities and pumping stations and oil tankers in the Arabian Gulf.

His Highness stressed that these attacks not only target vital installations of the Kingdom, but also target global oil supplies and threaten its security, and thus threaten the global economy, and highlights once again the importance of the international community to play a role in maintaining energy supplies against all terrorist actors who carry out such cowardly sabotage acts And support and fund them. 

Full statement from Saudi Aramco

Aramco’s emergency response teams have successfully responded to fires in their factories in Abqaiq and Khurais resulting from terrorist attacks with projectiles.

It was able to put out the fires that resulted from this terrorist act, which had a direct impact on production cuts by 5.7 million barrels per day.

“There are no injuries and thankfully among the staff,” said Saudi Aramco Chairman and Chief Executive Engineer Amin Hassan Al-Nasser after inspecting the sites.

He pointed out that he is currently working on the recovery of quantities of production, and will be updated information about this within the next 48 hours, God willing. 


 

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4 comments on “It’s Official: 5.7 Million Barrels Of Saudi Oil Production Shut After Aramco Drone Attacks

  1. If crude goes up $10, fade that and liquidate most positions to fade more up $5.

  2. Additional Comment Drone

    Re: “There are no injuries and thankfully among the staff,”

    Considering that global supplies apparently are massively impacted, it is a miracle that not much infrastructure was impacted and that nobody was hurt, it’s almost like insurance fraud, just like here in America, when just like magic, old refineries burn to the ground and nobody gets hurt. I’m sure this is all normal, but color me a bright shade of skeptical, this seems political with a large dose of economic manipulation, connected to an inability of the Saudis to detect incoming attacks from drones and rockets — this stinks in a very strange way!

  3. Can the Saudis be trusted to report anything fully and/or accurately? Cuz like, you know, bone saw.

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