Oil prices up 10% as attack on Saudi facilities disrupts output

Oil prices saw a record surge on Monday after attacks on two Saudi facilities slashed output in the world’s top exporter by half, fuelling fresh geopolitical fears as Donald Trump blamed Iran and raised the possibility of a military strike on the country.
Brent futures surged $12 in the first few minutes of business – the most in dollar terms since they were launched in 1988 and representing a jump of nearly 20 percent – while WTI jumped more than $8, or 15 per cent.
Both contracts pared the gains as the day wore on but were still up nearly 10 percent.
Crude oil production per country as share of world total in 2018 @AFPgraphics pic.twitter.com/0rAnDsawKc — AFP News Agency (@AFP) September 16, 2019 The attack by Iran-backed Houthi rebels in neighbouring Yemen, where a Saudi-led Coalition is bogged down in a five-year war, hit two sites owned by state-run giant Aramco and effectively shut down six percent of the global oil supply.
Trump said on Sunday the US was “locked and loaded” to respond to the attack, while Secretary of State Mike Pompeo said: “The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression.” Tehran denies the accusations but the news revived fears of a conflict in the tinderbox Middle East after a series of attacks on oil tankers earlier this year that were also blamed on Iran.