# Oil prices likely to surge at Sunday's opening after a "different" type of Saudi Arabia disruption - FreightWaves

> Oil prices were expected to surge when global markets reopened Sunday after drone attacks on Saudi oil facilities, including the Shaybah field and the Abqaiq processing plant. The Houthis claimed responsibility, and about half of Saudi production was reported shut in. The attack came as diesel prices were already set to rise for trucking fuel surcharges.

- Date: 2019-09-15 · published 2019-09-15T12:00:00.000Z
- Category: geopolitics · region Saudi Arabia · magnitude high
- Page: https://feedsoft.ai/events/5990-oil-prices-likely-to-surge-at-sunday-s-opening-after-a-different-type-of-saudi
- Commodities: [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

Roughly half of Saudi output offline is a major crude supply shock that will push fuel costs up for transport and farm operations. Higher diesel increases freight and surcharge costs for feed delivery.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲
- DIESEL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2019-09-15 | 1 | +7.1% | 4.6 | Weekend drone attacks on Abqaiq and Shaybah shut in about half of Saudi output, so prices were expected to surge at the Sunday open. |
| DIESEL | 2019-09-15 | 1 | +5.3% | 4.7 | Sunday-dated preview of the surge at the market reopen after the Abqaiq and Shaybah strikes, which is the supply-risk trigger for the diesel jump. |
| BRENT | 2019-09-16 | 1 | +11.7% | 4.6 | Anticipates the surge at the Sunday reopening following the drone attacks and Houthi claim, setting up the Monday move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| BRENT | 2017-05-26 | [OPEC cut unlikely to move U.S. diesel prices - FreightWaves](https://feedsoft.ai/events/71182-opec-cut-unlikely-to-move-u-s-diesel-prices-freightwaves.md) | -2.9% | -13.5% |
| BRENT | 2019-09-16 | [Diesel Fuel Prices Surge Following Drone Attack on Saudi Arabian Oil Facilities](https://feedsoft.ai/events/5987-diesel-fuel-prices-surge-following-drone-attack-on-saudi-arabian-oil-facilities.md) | +6.6% | -0.3% |
| BRENT | 2017-03-29 | [Arab News \| Oil prices rise with Libya disruption](https://feedsoft.ai/events/72158-arab-news-oil-prices-rise-with-libya-disruption.md) | +5.1% | -0.2% |
| BRENT | 2020-05-11 | [Saudi Arabia deepens oil cuts as weak demand weighs on prices](https://feedsoft.ai/events/53030-saudi-arabia-deepens-oil-cuts-as-weak-demand-weighs-on-prices.md) | +15.8% | +46.8% |
| BRENT | 2022-10-08 | [Why Did Saudi Arabia Defy Biden to Keep Oil Prices High - Bloomberg](https://feedsoft.ai/events/39060-why-did-saudi-arabia-defy-biden-to-keep-oil-prices-high-bloomberg.md) | -6.6% | +0.7% |
| WTI | 2017-05-26 | [OPEC cut unlikely to move U.S. diesel prices - FreightWaves](https://feedsoft.ai/events/71182-opec-cut-unlikely-to-move-u-s-diesel-prices-freightwaves.md) | -2.1% | -11.9% |
| WTI | 2019-09-16 | [Diesel Fuel Prices Surge Following Drone Attack on Saudi Arabian Oil Facilities](https://feedsoft.ai/events/5987-diesel-fuel-prices-surge-following-drone-attack-on-saudi-arabian-oil-facilities.md) | +5.8% | -0.1% |
| WTI | 2017-03-29 | [Arab News \| Oil prices rise with Libya disruption](https://feedsoft.ai/events/72158-arab-news-oil-prices-rise-with-libya-disruption.md) | +5.5% | +2.0% |

## Sources

- freightwaves.com: https://www.freightwaves.com/news/oil-prices-likely-to-surge-at-sundays-opening-after-a-different-type-of-saudi-arabia-disruption

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.