Drone and missile attacks targeted two of Saudi Arabia’s oil processing facilities on Saturday impacting 5% of the world’s oil supply. What is the aftermath of this attack? Donald Trump, Vladimir Putin, and Saudi officials weigh in.

Saudi Arabia Drone & Missile Oil Attacks

  • Drone pre-dawn attack on Saturday September 15th wiped out the heart of Saudi Arabia’s Aramco’s oil processing facility.
  • Saudi Arabia’s oil output cut by 5 million barrels or 50% impacting 5% of world’s oil.
  • Claims of responsibility by Yemen’s Houthi rebels for the attacks.
  • US intelligence claims attacks launched from Iran but Saudi Arabia says information is not definitive.

Aftermath or Only the Beginning?

  • Brent crude oil prices +14.6% to $69.02 a barrel which is the largest gain on record.
  • WTI crude oil prices +14.7% to $62.90 a barrel.
  • Energy companies stocks +10.0% to +30.0% and created trading opportunities.
  • Expected positive short-term impact on stock market but beware risks of drawdowns.
  • Currencies of commodity-linked nations (including Malaysia) rise.
  • Globally longer-term impact expected to be mitigated with nations petroleum reserves, alternate oil sources, and alternative energy sources.
  • Petrol prices at the gas station expected to rise slightly but not drastically.
  • Raised tensions between US and Iran, and US and Saudi Arabia relationships.
  • Saudi Arabia invites global experts to investigate the attacks.
  • Russia’s President Vladimir Putin proposes missile defense for Saudi Arabia.
  • US and Saudi officials divided with some wanting military action while others worry that attacking could trigger a wider regional war.

“Do I want war? I don’t want war with anybody.” ~Donald Trump, US President

“We are ready to provide respective assistance to Saudi Arabia, and it would be enough for the political leadership of Saudi Arabia to make a wise government decision – as the leaders of Iran did in their time by purchasing S-300 and as (Turkish) President (Tayyip) Erdogan did by purchasing the latest S-400 ‘Triumph’ air defence systems from Russia.” Vladimir Putin, Russia President

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