Oil Prices Surge After Attacks on Saudi Facilities

Drone attacks on oil processing facilities in Saudi Arabia on Saturday caused petroleum prices to surge 20% to nearly $72 per barrel on Monday.

The strikes at Saudi Arabian Oil Co. targeted the company’s Khurais oil field and Abqaiq oil processing complex, described as the world’s largest such facility.

The attacks knocked out 5.7 million barrels per day of Saudi Arabia’s oil production, or about 6% of global petroleum output.

Iraqi-backed Houthi rebels in Yemen claim responsibility for the attacks and have warned of further attacks. Iran denies that the strikes originated from within its borders.

Analysts say the price of Brent crude, the global standard, could zoom from $66 per barrel in recent weeks to as much as $100 per barrel if restoring normal operations takes too long.

President Donald Trump declares the U.S. is “locked and loaded” to respond to the attack if needed. He also has authorized the U.S. to release some of its oil reserves to help maintain price stability.