- Ten drones attacked one of Saudi Arabia’s largest oilfields in Hijra Khurais and the world’s biggest crude processing facility at Abqaiq on Saturday, causing a loss of 5.7 million barrels of crude production a day.
- Although it’s still too early to tell the extent of the damage and how long the facilities will be shut down, oil analysts told CNBC the impact on the commodity prices could be in the double digits.
- “This is a big deal,” said Andrew Lipow, president of Lipow Oil Associates. “Fearing the worst, I expect that the market will open up $5 to $10 per barrel on Sunday evening.”
- “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,” said Bob McNally, president at Rapidan Energy Group.
A trader wipes his eyes as he watches stock prices at the New York Stock Exchange in New York.