Over the weekend, Saudi Arabia suffered an attack on some of their main oil refining facilities in Abqaiq and Khurais. The disturbance is expected to limit the supply of Saudi oil by 5.7 million barrels each day until the damage is cleared away.
According to information by the United States, the facilities were hit by Iranian missiles. This is just the latest development in a series of attacks by Iran in the Middle East. Iran is currently under heavy sanctions by the United States and is having trouble exporting its own oil products. The country has lashed out against its oil-exporting neighbors, particularly those closely aligned with the United States, such as Saudi Arabia.
People familiar with the case expect that it would take weeks for Saudi Arabia to repair all of its facilities and return to the previous output levels.
The country is the biggest oil producer in OPEC, so the interruption caused a massive glut in supply, resulting in a price spike. Brent crude reached $71.95 in the aftermath of the attack, while WTI touched $63.34.
Despite the lower supply that Saudi Arabia will be able to provide in the days to come, the US has already stepped up to fill in the glut.
