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Oil prices surged over 19 percent to the highest since 1991 after attacks of Saudi Arabia's oil facilities cut more than 5 percent of global oil supply.
Oil prices surged over 19 percent to the highest since 1991 on Monday after attacks of Saudi Arabia's oil facilities cut more than 5 percent of global oil supply. Benchmark Brent crude futures gained by as much as 19.5 percent to $71.95 per barrel, the biggest intraday jump since January 14, 1991, reported Reuters. US WTI futures also jumped by as much as 15.5 percent to $63.34 a barrel, the biggest intra-day percentage gain since June 22, 1998, said Reuters.
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At 9.15 AM, the front-month contract was at $66.20 per barrel, up $5.98, or 9.9 percent, while US oil futures were at $59.73 a barrel, up $4.88, or 8.9 percent.
Saudi Arabia and the United States, the two largest crude exporters in the world, have quickly moved to cap the surging oil prices.
Saudi Arabia's oil stock
Saudi Arabia's energy minister has confirmed that attacks on its oil facilities and said it will make up for some of the loss with oil stocks. Prince Abdulaziz bin Salman bin Abdulaziz says explosions at Saudi Aramco's Khurais and Abqaiq plants caused several fires that were controlled, but there were no injuries. He says Aramco will provide updated information within 48 hours of restoring full production.
Seeking to soothe market jitters, Aramco CEO Amin Nasser has said "work is underway to regain the (lost) production quantities". Bloomberg News reported that Aramco expects to restart most of the operations "within days".
Saudi Arabia, the defacto leader of the OPEC, had 2.27 million bpd of the organisation's 3.21 million barrels per day global supply capacity. Saudi Arabia's energy minister has confirmed that attacks on its oil facilities Saturday knocked out about 50 percent of the country's production.
US oil reserves
US President Donald Trump said he had approved the release of US strategic petroleum reserves "if needed" to stabilize energy markets. The president said the final amount of the release, if any, would be "sufficient to keep the markets well-supplied."
The US Energy Department says the US "stands ready to deploy resources from the Strategic Petroleum Oil Reserves if necessary to offset any disruptions to oil markets" in the wake of a drone attack in Saudi Arabia on the world's largest oil processing facility.
In a statement Saturday night, the department said Energy Secretary Rick Perry has also directed department leadership to work with the International Energy Agency on potential available options for collective global action if needed. Nations of the 30-member IEA seek to respond to disruptions in the oil supply and advocate for energy policy.
The US, which has briefly overtaken Saudi Arabia as the world largest crude exporter this year, holds 630 million barrels of strategic oil reserves.
(With inputs from agencies)