Markets & Forecasts

Saudi drone attacks deliver oil supply shock

The position of Saudi Arabia as a reliable supplier is at stake as the kingdom’s oil and gas infrastructure becomes more vulnerable to sabotage The position of Saudi Arabia as a reliable supplier is at stake as the kingdom’s oil and gas infrastructure becomes more vulnerable to sabotage.

By Abhishek Kumar 16 September 2019 Middle East & Africa / Exploration & Production 0 34584

Damage to infrastructure at Saudi Arabia's Khurais facility shown in an image provided by the US government. (PA)

Directional impact on forecast:
Bullish for oil prices

The attacks on facilities in Saudi Arabia’s oil heartland of Abqaiq and Khurais on 14 September are a testament to the fact that tensions in the Middle East are reaching boiling point. And the geopolitical turmoil will only get worse.

While the attacks will bring the reliability of Saudi oil exports under scrutiny, they also have the potential to deliver a supply shock to the global oil market and disrupt gas supplies to the kingdom’s domestic...