Oil witnessed biggest price surge since 1991 Gulf war after Aramco attack

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Oil witnessed biggest price surge since 1991 Gulf war after Aramco attack

After at least 10 drone attacks on two of Saudi Aramco’s largest oil processing facilities believed to be launched and operated by Iran despite acknowledgement of Yemeni Houthis, which shut down at least 5 per cent of entire global crude oil output, Brent crude price had witnessed its biggest price surge since 1991 Gulf war as United States officials including US President Donald Trump had been quoted saying earlier on Monday, the 16th of September 2019, that Washington was “loaded and locked” for a full-fledged war to retaliate.

Although an Iran-backed Yemeni Houthi movement which controls part of Saudi-bordered Yemen alongside Yemen’s capital, had claimed responsibility of a series of libellous drone attacks, global super powers likes of US and UK were accusing Iran for the drone attacks, nonetheless Iran had denied the blames adding that it was prepared for a full-blown war against United States with almost all of US military within range of Iranian missile attacks.

However, after surging as much as 19 per cent to reach a session high of $71 per barrel, Brent crude eased following Trump’s announcement that US would soon offload emergency oil supplies in order to balance crude oil market, while a number of producers had been quoted saying that they had enough stocks worldwide for at least a few weeks to make up for the shortfall.

On top of that, Saudi Aramco has 188 million barrels of oil stored worldwide which it had pledged to capitalize to compensate the deficits.