Oil prices trading 10% higher after soaring 20% in biggest surge since 1991

SINGAPORE/LONDON: Oil prices surged nearly 20% at one point today, with Brent crude posting its biggest intraday gain since the Gulf War in 1991, after an attack on Saudi Arabian oil facilities at the weekend halved the kingdom’s production.

Prices came off their peaks after US President Donald Trump authorised the use of his country’s emergency stockpile to ensure stable supply.

Brent crude futures, the international benchmark, rose as much as 19.5% to US$71.95 (RM299) per barrel, the biggest intraday jump since Jan 14, 1991. By 1236 GMT, the contract was at US$66.67, up US$6.45, or 10.7%.

US West Texas Intermediate futures climbed as much as 15.5% to US$63.34, the biggest intraday percentage gain since June 22, 1998. The contract was later at US$60.29, up US$5.44 or 9.9%.

The attack on state-owned producer Saudi Aramco’s crude-processing facilities at Abqaiq and Khurais cut output by 5.7 million barrels per day. The company has not given a timeline for the resumption of full output.

Two sources briefed on Aramco’s operations said a full return to normal production volumes “may take months”.

“If these outages are lengthy, Saudi Aramco will struggle to hit export specification for its Arab Light and Arab Extra Light streams, and may even be forced to declare force majeure on some of these exports,” consultancy Energy Aspects said in a note.

“We expect the IEA and US DoE to also release strategic stocks to fill the gap if the Saudi outage is prolonged,” it said, referring to the International Energy Agency and the US Department of Energy.

Trump said he had approved the release of oil from the US Strategic Petroleum Reserve if needed. He also said the United States was “locked and loaded” for a potential response to the attack.

It was the threat of retaliation and escalation of the tension and conflict in the Middle East, however, that has kept prices high, irrespective of the relief from global stockpiles.

“This justifies a risk premium on the oil price, so prices are initially unlikely to return to the levels at which they were trading before the attacks,” said Carsten Fritsch, oil analyst at Commerzbank AG in Frankfurt, Germany.

Saudi oil exports will continue as normal this week as the kingdom taps into stocks from its large storage facilities, an industry source briefed on the developments told Reuters.

Major importers of Saudi crude, such as India, China, Japan and South Korea, will be the most vulnerable to the supply disruption. – Reuters

Oil surges 20pc after Saudi attack, softens on stockpile hopes

SINGAPORE, Sept 16 — Oil prices surged nearly 20 per cent at one point today, with Brent crude posting its biggest intraday gain since the Gulf War in 1991, after an attack on Saudi Arabian oil facilities at the weekend halved the kingdom’s…

Traders: Saudi Aramco’s trading arm seeks oil products after attacks

SINGAPORE, Sept 16 — Saudi Aramco’s trading arm is seeking oil products for prompt delivery following Saturday’s attacks on Saudi oil facilities, three trade sources said today. Saudi Arabia is set to become a significant buyer of refined…

Saudi attack dents currencies of crude importers, stocks dip

BEIJING, Sept 16 — Emerging market currencies took a backseat today with those of major crude importers sliding as oil prices surged after an attack on Saudi Arabian facilities cut more than 5 per cent of the global oil supply. The fallout from…

Russia: Enough oil in global stockpiles to replace lost Saudi barrels

MOSCOW, Sept 16 — There is enough oil in global stockpiles to replace barrels Saudi Arabia has temporary lost due to attacks on its oil facilities, Russia’s energy minister Alexander Novak, an ally of Riyadh in a pact to curb supply, told…

Oil surges, stock futures slip after attack on Saudi facility

SYDNEY, Sept 16 — Oil prices surged to six-month highs today while Wall Street futures turned lower and safe haven bets returned after weekend attacks on Saudi Arabia's crude facilities knocked out more than 5 per cent of global oil supply. US…

Saudi attacks raise spectre of oil at US$100 per barrel

LONDON, Sept 15 — The oil market will rally by US$5-10 per barrel when it opens tomorrow and may spike to as high as US$100 (RM416) per barrel if Saudi Arabia fails to quickly resume oil supply lost after attacks over the weekend, traders and…

Global stocks, bond yields lifted by US-China trade hopes

EW YORK, Sept 13 — A gauge of global stocks rose for an eighth straight day and benchmark government bond yields climbed yesterday after signs of progress in US-China trade talks, as well as a solid US retail sales report, allayed recession…

Pound jumps on Brexit hopes as global stocks firmer

LONDON, Sept 13 — The British pound hit a seven-week high against the dollar today on easing fears of a no-deal Brexit. Stock markets meanwhile won support after China said some US agricultural products including pork and soybeans would be exempt…

Asian markets rally on growing trade hopes and ECB easing

HONG KONG, Sept 13 — Equities rose in Asian trade today after the European Central Bank unveiled a fresh round of economic stimulus and another interest rate cut while a report said the US was considering a short-term trade agreement with China….