Daniel Hynes and Soni Kumari, Analysts at Australia and New Zealand Banking Group express their take on the attack on the Saudi oil facilities.
“Facilities at the Abqaiq and Khurais oil fields were attacked by drones at 4am local time on Saturday. This has cut Saudi Arabia’s oil capacity in half, and is likely to see oil prices surge higher in coming days.
Saudi Arabia is likely to maintain exports by using domestic stockpiles.
We expect the market to quickly price in a sizeable geopolitical risk premium. This should see Brent crude test the US70/bbl mark in the short term.”
Saudi oil strikes to drive up risk premium in crude market – S&P Global Platts