European shares shriveled after attack on Saudi oil facilities

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European shares shriveled after attack on Saudi oil facilities

On Monday, the 16th of September 2019, a basket of European bourses posted heavy losses after at least ten drone attacks on two oil facilities of Saudi Aramco had wiped out the OPEC-Kingpin and the largest oil producer, Saudi Arabia’s half of daily output capacity, throttling the crude oil price higher meanwhile ratcheting up geopolitical concerns among the investors across the globe.

UK crude snowballed as much as 20 per cent on Monday, its largest intra-session gain since 1988, which in effect helped European oil and gas index .SXEP to post a heavy gain of 2.8 per cent, remarking its biggest daily percentage gain since January this year.

Aside from that, a mushrooming crude oil price had also helped energy-heavy Norwegian stocks to post a gain of 1.65 per cent, meanwhile, oil majors likes of BP, Shell, Total, all posted heavy gains between 2.5 per cent and 4 per cent while a UK- and Irish-based oil explorer Tullow oil jumped 8.4 per cent followed by reveal of its plan to offload three more exploration wells in Guyana.

Meanwhile, addressing to a weaker investors’ sentiment despite a strong lift of oil stocks which eventually dragged European bourses downwards on Monday (September 16th), City Index’s Ken Odeluga wrote in a client note, “Despite a strong lift for oil stocks, the larger, more liquid, higher-capitalisation indices in western Europe with the strongest global links were all weak.

It looks like investors assess the situation as having potential to further weigh on a geopolitical landscape already beset by the slowing global economy, Brexit and trade. ” Quoting statistics, on Monday’s (September 16th) market closure, London’s FTSE 100 posted a plunge of 0.63 per cent to 7,321.41, Frankfurt’s DAX drowned 0.71 per cent to 12,380.31, and French CAC 40 shed 0.94 per cent to 5,602.23, while Italy’s MIB FTSE jolted 0.96 per cent downwards to wrap up the day at 21,969.24 and Madrid’s IBEX 35 shrugged off just a notch shy of 1 per cent to 9,052.00 on Monday’s (September 16th) market round off.