Oil Price: drone attack on Saudi oil facility reversed today's oil gains

 

Oil price was in the green territory for most of the day before dipping considerably in response to the latest drone attack on Saudi oil facilities by Yemen’s Houthi rebels.

The price recovered when the Kingdom said there was no serious damage to the facility in question.

Saudis admitted one of its oil facilities near Riyadh, the capital, came under attack from a drone that resulted in a fire in the afternoon.

According to Saudi Press Agency, the fire was quickly brought under control and there was no damage or injury; the oil supply from the facility did not get affected either.

Houthi attacks by drones and missile are nothing new; the level of sophistication frequency and relative success, however, is a worry for the kingdom; Saudis are frustrated with the lukewarm response from its allies, both in the region and beyond, in the presence of continuous attacks launched  from Yemen.

Saudis did not mince their word when they said, “These terrorist and subversive aggressions and those carrying them out or supporting them,” in the aftermath of the attack.

The Kingdom also wants the international community to condemn these attacks and says that the stability and security of the global energy supply is at serious risk.

Saudi sources say that a fleet of six drones took part in the attack; the damage, if any, however, was not disclosed.

Houthis, meanwhile, took the responsibility for the attack and said it was against what they called, ‘Saudi aggression’ against them.

The attack on the oil facility brought the crude oil price down, which showed a slight recovery during the day, having suffered a steady decline for the past few days; it has since recovered slightly.

The increase in US oil stocks, decline in China’s oil imports, India’s pertinent problem with the current oil price and the latest warning from the US to China over buying Iranian oil do not help recover the oil price from its current stagnation.