Oil markets are reeling from the biggest attack on oil infrastructure since the Gulf War after drones hit Saudi Arabia's key Abqaiq processing facility and Khurais oil field. The attacks have taken 5.7 million b/d of oil production offline, about half of the kingdom's capacity and some 5% of global supplies.
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Claimed by Iran-backed Houthi rebels, the attack caused spot Brent crude to spike 19% to $71.95/b at market open Monday before the oil benchmark slipped back to around $66/b. The threat of an extended supply outage from Saudi Arabia, the world's top crude exporter, highlights the lack of spare production capacity in the market, with the impact of this being felt across upstream and downstream markets.
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