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Saudi Arabia: why the spike in the price of oil

16 September 2019

Saudi Arabia: why the spike in the price of oil

This weekend, 14 September 2019, the attack took place the drones on one of the largest refineries in the world, which led to the decrease of production in two times, that is 5 million barrels a day. This led to the fact that oil prices rebounded.

 

The price of oil brand Brent, according to the London exchange ICE Futures Europe climbed 19%, or approximately 71,95 USD per barrel. After, the price fell to 67,20 USD per barrel. The last time such an increase happened in 1991.

 

Because of the switch, the price of oil brand WTI was frozen for a few minutes, this phenomenon was triggered by the price increase more than 7%. During the start of trading, futures promptly rose by 15.5%, that is, until 63,34 USD, the last time the price was raised so high in 2008.

 

The Saudi authorities say that by the end of 16 September 2019 will be able to recover the third part of the major volumes of oil. However, such indicators are not encouraging anyone. Investors believed that after the attack will recover half the oil production, and by the end of the week had planned to fully restore oil production and to restore the former volumes.

 

Saudi Aramco is the largest oil refinery in the world, located in Saudi Arabia, large deposits of Abqaiq and Horise . Industrialists and the authorities say that the attack on the plant was done by drones. Guilty think Houthi rebels continued, however, the U.S. government that the attack was provoked by Iran.

 

In early 2018, Moody's Investors Service said the company was Saudi Aramco most profitable in the world, focusing on the fact that it controls the major oil power of Saudi Arabia. Revenue procedure 111,1 billion USD is more than the combined of Apple, Google and ExxonMobil.