Global spare oil cap on US hands after Saudi outage, price surge likely


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Global spare oil cap on US hands after Saudi outage, price surge likely

A series of drone attack led by Iran-backed Yemeni Houthis on two of the oil facilities of Saudi Aramco just before dawn on Saturday, the 13th of September 2019, is believed to have wiped out the OPEC kingpin’s half of the production capacity, meanwhile making United States the only real last line of defence to cushion up global supply chains either by raising its output or softening its sanctions on some OPEC founding members and major oil producers likes of Venezuela and Iran.

Although, the second-largest crude oil producer of the world and the de-facto leader of OPEC (Organization of the Petroleum Exporting Countries), a pact of 14 petroleum exporting nations, Saudi Arabia, had yet to comment on the scale of damage it had faced off on its oil production, nonetheless industry sources had already revealed that between 5 to 6 million barrels of crude oil output per day or 5 to 6 per cent of entire global oil supply was curbed out, which would likely to prompt up an en masse crude oil price rally on Monday (September 15th) market unless United States intervened by increasing its oil output.

In point of fact, spare oil capacity is the amount which a country could produce aside from its usual output, while besides United States, Iran and Venezuela are the only countries which could generate significant spare capacity at a shorter time-frame to cushion up global oil supply chains in times of grave needs such as this, however, both of the countries were barred from exporting crude oil due to a sweeping US ban.