Oracle Intelligence

Online newspaper platform

Business Conflicts and Wars Economy Energy Security

Oil prices rise after attacks hit Saudi energy infrastructure

Ziggy Ojiegbe

Global oil prices climbed after attacks on Saudi Arabia’s energy infrastructure disrupted production and transport capacity, raising fresh concerns about supply in already tight markets.

Ad >>>

International benchmark Brent crude settled at $95.92 per barrel on Thursday, before jumping by more than $1 later in the day following news that the attacks had reduced Saudi oil production capacity by about 600,000 barrels per day. Throughput on the country’s East-West Pipeline also fell by roughly 700,000 bpd.

Saudi Arabia’s Ministry of Energy did not identify those responsible. However, the kingdom has intercepted numerous Iranian missiles and drones in recent weeks amid escalating regional tensions.

The strikes hit multiple energy assets, including oilfields, refineries, pipeline infrastructure, and processing facilities across Riyadh, the Eastern Province, and Yanbu Industrial City. One pumping station on the East-West Pipeline was damaged, significantly reducing flows along what has become Saudi Arabia’s primary export route.

The pipeline has taken on greater importance as the Strait of Hormuz remains effectively blocked. The strait typically carries nearly a fifth of global energy supplies, and disruptions there have forced Saudi Arabia to reroute exports inland.

READ MORE!  Concerns rise over Jihadists resurgence in Niger

According to energy analytics firm Kpler, any reduction in Saudi output is likely to tighten global supply further. “Any pullback on volume is going to add to the tight situation,” said analyst Matt Smith.

Key oilfields were also affected. The Manifa field lost about 300,000 bpd in capacity, while earlier damage to the Khurais facility cut an additional 300,000 bpd. It remains unclear how long these outages will last.

Refining operations were also disrupted. Major facilities impacted include SATORP in Jubail, the Ras Tanura refinery, the SAMREF refinery in Yanbu, and the Riyadh refinery. Fires at processing plants in Ju’aymah further affected exports of liquefied petroleum gas and natural gas liquids.

The attacks resulted in casualties, with one Saudi security staff member killed and seven others injured.

The developments come amid a fragile ceasefire linked to the ongoing U.S.-Israeli conflict with Iran. Despite the truce, hostilities continue across the region, including Israeli strikes in Lebanon and ongoing Iranian military activity.

Saudi Arabia, the world’s largest oil exporter, plays a critical role in global energy markets. Any prolonged disruption to its production, refining capacity, or export routes could further tighten supply and increase price volatility worldwide.

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *