Crude oil surges 20% on Aramco drone strikes

Mumbai: Crude oil on Monday surge nearly 20% following drone attack in Saudi Arabia’s oil industry forcing the kingdom to cut its oil output in half.

International benchmark Brent crude futures soared $11.73, or 19.48% to $66.91 per barrel. US West Texas Intermediate crude futures jumped $8.49, or 15.48%, to $59.76 per barrel.

The reported strikes by 10 drones at Abqaiq and Khurais oil facilities, have disrupted more than half of Saudi Arabia’s oil capacity or 5.7 million barrels per day (mbpd). The US has blamed Iran for the attacks even as Yemen’s Houthi rebels claimed credit. Some oil traders have already begun to speculate if oil prices will cross the $100-mark yet again.