Saudi Aramco has had to cut production by as much as 5 million barrels a day after the Houthi rebel group in Yemen led a drone attack on the the biggest crude-processing plant.
The shutdown amounts to about 5% of the world’s daily production of crude oil, according to The Wall Street Journal.
“Drone attacks on two Saudi Aramco factories in Abqaiq and Khurais provinces on Saturday sparked fires that the state oil company brought under control,” a Saudi interior ministry spokesman told Reuters.
A source told Bloomberg Aramco believes it will be able to restart production fairly quickly.
“For the oil market if not global economy, Abqaiq is the single most valuable piece of real estate in planet earth,” Bob McNally, head of Rapid Energy Group in Washington, told Bloomberg.
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.