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Drone strikes on Saudi oil facilities over the weekend shut more than half of the kingdom's daily exports, about 5% of world crude production. Brent briefly rose almost 20% in early trading and settled up about 10% at $66.28, later topping $70, while US crude rose more than 10%.
The outage is the largest supply disruption on record according to the IEA, so it tightens global crude and raises energy and freight costs for feed buyers. Experts expect weeks before full production returns, which keeps upward pressure on prices.
npr.orgScott NeumanSep 16, 2019After 656 past bullish geopolitics events, Crude Oil (Brent) moved a median +1.9% over 5 sessions (63% higher; middle half -2.7% to +6.6%), and +0.7% over 20.
After 626 past bullish geopolitics events, Crude Oil (WTI) moved a median +2.1% over 5 sessions (62% higher; middle half -2.3% to +8.5%), and +1.6% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
The Saudi strikes cut about 5% of world crude supply and drove Brent sharply higher.
Covers the supply shut-in and the Brent spike, but its settlement figure is inconsistent with other sources.
