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Saudi state cuts oil production in half after drone attack

estatal saudita corta produção de petroleo na metade apos ataque de drones

State announces cut of 5.7 million barrels of oil per day, more than half of the country’s daily production, after drone attack on Saturday (14)

Saudi Arabia announced the cut of more than half of its daily oil production following drones attacks on two of its largest facilities early on Saturday (14). Yemeni rebel rebels took responsibility for the bombing.

Saudi Aramco, the country’s state oil producer, said in a statement that the reduction would be 5.7 million barrels of oil per day – in total the country produces 10.3 million barrels a day.

The cut corresponds to about 6% of world production and could lead to large increases in world oil prices. Aramco’s statement does not specify how long this cut will last.

Saudi Arabia’s energy minister and the king’s son, Prince Abdulaziz bin Salman, said the country’s reserves would cover cut production, at least initially.

Drone Attacks

Two of Saudi Arabia’s largest oil installations were attacked and went up in flames at dawn on Saturday. Yemeni Houthi rebels took responsibility for the bombing, which they say was executed with 10 drones.

The refineries hit are in Khurais and Abqaiq districts, about 800 km from the Yemeni border, which has been in civil war since 2014. Iranian-backed Houthi are fighting against the central government that is funded by Saudi Arabia and other Arab League countries.

Abqaiq is the largest oil refinery in the country and Khurais is one of the country’s main extraction fields. According to a source heard by Reuters, the impact on Saudi oil production could reach 5 million barrels a day, about half of the total.

Source: [R7]

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