Oil prices jump the most ever after Saudi strike
Source: Bloomberg
Oil surged the most ever after a strike that wiped out about half of Saudi Arabias output capacity heightened concern about more destabilization in the worlds most important crude-producing region.
In an extraordinary start to trading on Monday, Londons Brent futures leaped almost $12 in the seconds after the open, the most in dollar terms since their launch in 1988. Prices have since pulled back about half of that initial gain but, with Saudi officials downplaying prospects for a rapid recovery, crude is heading for the biggest advance in almost three years.
For oil markets, its the worst sudden disruption ever. The attacks that damaged a key processing complex and one of the kingdoms marquee fields highlight the vulnerability of the worlds biggest exporter. The crisis also means a new geopolitical premium of about $5 a barrel, Mizuho Securities USAs Paul Sankey wrote in a note.
We have never seen a supply disruption and price response like this in the oil market, said Saul Kavonic, an energy analyst at Credit Suisse Group AG. Political-risk premiums are now back on the oil-market agenda.
Read more: https://www.msn.com/en-us/money/markets/oil-prices-jump-the-most-ever-after-saudi-strike/ar-AAHlgH9?li=BBnbfcN
pwb
(11,205 posts).
cstanleytech
(26,085 posts)OnlinePoker
(5,702 posts)Whenever it happens, it's expected to be the largest IPO in history. What a beneficial event to happen for them if the prices stay up.
Loki Liesmith
(4,602 posts)CousinIT
(9,151 posts)Since we no longer rely on Saudi oil?
pwb
(11,205 posts)After decades of saying we should be independent. We could be if it all stayed here. They fucked that up too.
Lucky Luciano
(11,242 posts)...between the two, an arbitrage occurs because the cost of shipping to Europe doesnt change much.
Tactical Peek
(1,204 posts)'In dollar terms' can be misleading.
. . . Brent jumped more than 19% to $71.95 a barrel on ICE Futures Europe, its biggest gain in percentage terms since 1991.
. . . When it finally started trading, WTI jumped more than 15% to $63.34, the most since 2008.
It appears to not be the most ever by percentage, which is to say not the most ever. It is a deceiving headline in my view and, sadly, the article fails to note the actual largest jump ever as far as I can tell, but it must be before 2008 at least.
ffr
(22,649 posts)But they missed. The terrorists attempted to shut down the Sun, but were unsuccessful when their drones were incinerated prior to reaching their destination.
Thus far, EV charging rates were unchanged on Monday for various Tesla owners at $0.00/supercharging Kwh.
Ford_Prefect
(7,829 posts)This is Gulf war III warming up in the bullpen. In which the Saudis arranged yet another Pipelineistan war against their market competition to be paid for and fought by US taxpayers.